Medical insurance rates will increase 10% in NY – InsuranceNewsNet

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Medical insurance rates will increase on average 9.7% next yr for people and seven.9% for small group plans, state records show.

The insurance premium rate increases got here in well below the proposed rates sought by health insurers, which requested rate hikes of nearly 19% and 16.5% for people and small group plans, respectively.

But despite the hassle, added costs from the ultimate medical health insurance rate increases will only further strain Latest Yorkers struggling financially amid historic inflation.

State Department of Financial Services Superintendent Adrienne Harris asserted the approved rate increases are a results of rising medical costs and inflation putting “upward pressure on premiums,” in addition to the lingering impacts of COVID-19 on the health system.

How does the speed increase compare to previous years?

The state’s decision to scale back the health insurers’ proposed rate hikes, Harris added, is estimated to save lots of individuals a complete of about $167 million. Small group plans will save an estimated $632 million attributable to the difference between the proposed and final rates.

“With our rate actions announced today, we proceed to prioritize the financial well-being of consumers while ensuring that Latest Yorkers have access to a sturdy, stable medical health insurance market,” Harris said in a press release Wednesday.

Still, the ultimate rates for next yr exceeded recent years. For instance, regulators last yr approved average rate increases of three.7% for people and seven.6% for small group plans. That was down from the 11.2% and 14%, respectively, sought by insurers.

Over 1.1 million Latest Yorkers are enrolled in individual and small group plans impacted by the speed increases, the state agency noted.

Insurers: Rates don’t account

for rising health care costs

Eric Linzer, president and CEO of the state Health Plan Association, which represents insurers, asserted the ultimate rates for next yr did not “fully account for the aspects driving underlying health care costs.”

Those health care costs “are largely driven by significant increases in the costs drug corporations, hospitals and providers are charging,” Linzer said in a press release Wednesday.

“The proposed rates also reflected the continued effect of COVID, including ongoing testing, treatment and vaccination, in addition to increased utilization and better costs attributable to care that was deferred consequently of the pandemic,” he said.

“The speed submissions were reasonable and appropriate, reflecting underlying costs and considering the premium reductions the state has imposed the last several years,” he added.

Previously, Linzer also asserted inflation contributed to the necessity for higher rates next yr.

The Latest York State Conference of Blue Cross and Blue Shield Plans also asserted the state must have allowed higher rates, citing rising costs linked to drug prices, state taxes, recent mandates and COVID-19. The insurer group added it strived “to limit rate increases to the bottom amounts possible” within the face of those costs.

Each medical health insurance trade groups urged state lawmakers to approve measures in the longer term that address the aspects driving up medical health insurance costs in Latest York.

For further details about final rates for 2023 for various health plans, visit the state Department of Financial Services website at dfs.ny.org or call the agency’s hotline at(800) 342-3736.

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