Health insurance rates will increase

NEW YORK--Despite the state not approving health insurance rate increases as high as requested by health insurance companies, the rates will increase on average by 9.7 percent next year for individuals and 7.9 percent for small group plans on the NY State of Health marketplace. According to Superintendent of Financial Services Adrienne A. Harris, the DFS denied insurers' requested rate increases of 18.7 percent for individuals and 16.5 percent for small groups.
"Rising medical costs and inflation continue to put upward pressure on premiums," said Harris. Adding, "With our rate actions announced today, we continue to prioritize the financial wellbeing of consumers while ensuring that New Yorkers have access to a robust, stable health insurance market."
According to the DFS, roughly 1.1 million New Yorkers are enrolled in individual and small group plans throughout the state. Those that have insurance through other providers will see their individual rate adjustments. Prices in all sectors of the economy have risen in 2022 with inflation at record levels.
The DFS announced they will hold insurers' profit provisions to 0.5 percent in the individual market. The state notes that rising costs of medical care, including in-patient hospital stays and drug costs, continue to be the main driver of insurance premium rate increases, and medical claims have increased as New Yorkers catch up on medical appointments and services postponed due to the pandemic.    
These rate decisions will not impact residents on the Essential Plan, which provides low or no-cost health insurance to low-income earners.