Insurance premiums are growing for those with coverage in New York
Health insurance rates in New York are expected to rise next year. This is a trend that is becoming more common throughout the country, as insurers seek approval to raise premiums in order to recover from financial losses associated with increasingly expensive medical claims. In New York, regulators have been challenging major rate increases and have managed to find some success. As such, rates are expected to increase by a modest degree, well below what the average increase would have been if regulators had not fought rate proposals.
Premiums predicted to rise by an average of 7.1% for individual coverage
Insurance premiums throughout the state are predicted to increase by an average of 7.1% next year for individuals. For small groups, rates are expected to increase by an average of 9.8%. According to the New York Department of Financial Services, the rates approved by state regulators are 30% lower than what insurers had initially proposed. Some consumers can expect to see their health insurance rates grow by a significant percentage, while others will see very modest increases.
Policies sold through state’s health insurance exchange are growing more costly
Consumers have been able to find a large number of policies that are suitable to their needs through the state’s health insurance exchange. The exchange has helped make coverage more accessible and consumers have been able to afford coverage more than they were able to in the past. Despite the affordability of the policies provided through the exchange, coverage has been growing more expensive over the past few years. Health Republic, which offers the most affordable plans on the state’s exchange, will increase premiums by 14.03% next year, which may place consumers under greater financial strain.
Insurers look to recover from financial losses by raising premiums
The rising costs of medical care and the growing frequency of expensive claims have placed health insurance companies in a difficult position. Insurers have had to take steps to recover from financial losses in order to continue competing in their favored markets. As a result, health insurance premiums have been growing throughout the country.