N.Y.’s small-group health premiums to rise 7.4% on average in 2024

Health insurers serving New York state’s small-group market will raise their premiums by 7.4 percent, on average, in 2024 after an initial request of an average 15.3 percent increase.

It represents a cut of 52 percent by the New York State Department of Financial Services (DFS), saving small businesses $607 million, DFS said in an Aug. 31 announcement.

A number of small businesses also will be eligible for tax credits that may lower those premium costs even further, such as the Small Business Health Care Tax Credit, DFS said.

The department on Aug. 31 said it had approved health-insurers’ premium-rate increases for 2024, adding that it saved consumers and small businesses a total of almost $732 million. 

Almost 800,000 New Yorkers are enrolled in small-group plans, which cover employers with up to 100 employees. 

More than 1.05 million New Yorkers are enrolled in individual and small-group plans.

In the individual market, DFS said it reduced insurers’ requested rates by 44 percent.

The rising cost of medical care — including in-patient hospital stays as well as rapid increases in drug prices — “continues to be the main driver” of health-insurance premium increases. 

In light of the continued increases in costs of health care and other consumer goods and services, DFS held insurers’ profit provisions to only 1 percent, the department said.

The chart lists health-insurance carriers’ initial requests and DFS approved rate increases.