The New York State Department of Financial Services (DFS) has approved health insurers’ premium-rate increases for 2023, which it says will save consumers and small businesses almost $800 million over the increases that insurers sought. Adrienne Harris, superintendent of financial services, announced the premium rate increases on Aug. 17. In the small-group market, DFS reduced […]
The New York State Department of Financial Services (DFS) has approved health insurers’ premium-rate increases for 2023, which it says will save consumers and small businesses almost $800 million over the increases that insurers sought.
Adrienne Harris, superintendent of financial services, announced the premium rate increases on Aug. 17.
In the small-group market, DFS reduced insurers’ requested rates by 52 percent, while in the individual market, the department trimmed insurers’ requested rates by 48 percent. Over 1.1 million New Yorkers are enrolled in individual and small group plans.
The rising cost of medical care — including in-patient hospital stays and drug costs — remains 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, the DFS said.
In addition, “recognizing the continued uncertainty” of the pandemic’s effect on consumers’ health-care costs and the economy, DFS held insurers’ profit provisions to a “historically low” 0.5 percent, the department noted.
Small-group market
Almost 850,000 New Yorkers are enrolled in small-group plans, which cover employers with up to 100 employees.
Insurers requested an average rate increase of 16.5 percent in the small-group market, which DFS cut to 7.9 percent for 2023, saving small businesses $632.4 million, the department contended.
A number of small businesses also will be eligible for tax credits that may lower those premium some more, such as the small business health care tax credit.
NYSCOP reaction
New York State Conference of Blue Cross and Blue Shield Plans (NYSCOP) that same day issued a statement on the 2023 health-insurance premium rates.
“The premium rate requests made by NYSCOP member health plans earlier this year reflected the challenges in keeping up with rising health care costs. While the final approved rates announced by the state today are significant, in some instances, DFS fails to fully account for the increasing cost and utilization of health care services.
NYSCOP plans strive to limit rate increases to the lowest amounts possible. However, in order to protect coverage for consumers, premiums need to keep up with skyrocketing prescription drug costs, increasing state taxes, new mandates, and the continued impact of the COVID pandemic. In fact, rising drug prices continue to have an unsustainable impact on overall medical spending trends.
NYSCOP members are hopeful that State lawmakers will take meaningful action in the next year to address the true drivers of rising health care costs so that all New Yorkers can access affordable coverage and care.”
The New York State Conference of Blue Cross and Blue Shield Plans is a partnership of Rochester–based Excellus Blue Cross Blue Shield, Highmark Blue Cross Blue Shield of Western New York, and New York City–based Empire Blue Cross Blue Shield. Together, the health-insurance plans provide health coverage for millions of New Yorkers, NYSCOP noted.