Insurers serving New York’s small-group market will raise their premiums, on average, 7.6 percent after requesting an average increase of 14 percent. That’s according to the New York State Department of Financial Services (DFS), which on Aug. 13 said it reduced the average increase by 46 percent, “saving small businesses over $468 million.” DFS also […]
Insurers serving New York’s small-group market will raise their premiums, on average, 7.6 percent after requesting an average increase of 14 percent.
That’s according to the New York State Department of Financial Services (DFS), which on Aug. 13 said it reduced the average increase by 46 percent, “saving small businesses over $468 million.”
DFS also noted that health-care costs are increasing to pre-pandemic levels.”
Almost 900,000 New Yorkers are enrolled in small-group plans, which cover employers with up to 100 employees. Some small businesses will also be eligible for tax credits that may lower those premium costs even further, DFS said.
Over 1.1 million New Yorkers are enrolled in small-group and individual plans. Rates in the individual market will increase 3.7 percent, saving consumers more than $138 million compared to insurers’ higher requested increases, per the DFS news release.
“As the state continues to reopen, people have been seeking long-postponed non-essential and elective health services, increasing costs and putting pressure on premiums. However, particularly due to the economic fallout from the pandemic, we must strive to ensure that quality, affordable health care remains available to all New Yorkers,” Linda Lacewell, former DFS superintendent, said in a statement. “I’m proud of the work DFS has done to scrutinize these rate applications and save over $600 million in premium costs for New Yorkers.”
Lacewell resigned from the superintendent’s role in August.
As in prior years, the continued rise of health-care costs is the main driver of premium rates. Medical claims decreased significantly in 2020 due to the postponement of elective and non-emergency services, but medical claims have increased in 2021 as New Yorkers catch up on medical appointments and postponed services. As a result, medical-claims trends, the rate at which medical costs and utilization increase, have returned to pre-pandemic levels, DFS explained.