Those living in rural areas could see their rates go up
New York residents that live in rural areas will likely see their health insurance rates go up in the coming year. This may be especially true for those that have purchased policies through the state’s insurance exchange. Those living in rural areas have the fewest options available when it comes to insurance coverage. As such, they are typically left with the most expensive plans. While some of these plans offer significant benefits, they do represent a certain degree of financial pressure.
Few customers in rural areas mean higher premiums
There are fewer customers in the state’s rural counties, which may be affecting the cost of insurance coverage. Because fewer people are paying for coverage, insurers are feeling the need to charge more for the coverage that they provide. With medical costs on the rise, figuring out a decent balance in insurance premiums has become a very difficult task.
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Consumers may have limited options available to them
State officials note that 16 health insurance companies have plans to offer coverage through the state’s insurance exchange. For those living in populated cities, insurance options will be plentiful. Outside of large cities, however, insurance options will become more limited, leaving some people with no alternative than to purchase expensive insurance plans. Rural communities may be lacking appropriate coverage options, but there may be nothing that can be done about this particular problem.
State’s exchange may not be able to solve this problem
The state’s insurance exchange has succeeded in providing insurance coverage to thousands of consumers, but this coverage is not always inexpensive. The exchange is populated with a large number of plans that are available for purchase, and some of these plans are less expensive than others. The availability of these plans is, however, based on agreements that insurance companies have with hospitals. Because hospitals are rarer in rural areas, meaning that insurance coverage is less available. This is a problem that exchanges cannot fix directly, as insurers determine whether or not they can provide coverage to those living in specific areas.