Data from the New York Department of Financial Services, which succeeds the state’s Insurance Department, shows that New Yorkers can expect to pay at least an average of 8% more on health insurance next year. In other, more populated areas of the state, such as New York City, the rates could get double-digit increases. Regulators have approved rate proposals from several insurance companies. The rate increases will affect more than 2 million policyholders throughout the state.
Regulators approved the sleuth of rate increases in the hopes that the move would slow the overall rate at which premiums were increasing. The majority of the state’s health insurance companies claim that rates are raising at such a quick pace due to the rising costs of medical care. New technologies and practices entering the medical field come with a hefty price tag, which insurers have been having trouble managing in recent years. This coupled with the aging population of baby boomers may create a major financial strain for insurance companies throughout the country.
Regulators have been keen to keep consumers updated on t he rate proposals submitted by health insurers. The information can be found on the Department of Financial Service’s website, where insurers are required to divulge the reasons for rate hikes in detail. The new rates will take effect in January of next year. Given the recent trend amongst regulators, rates may be on the rise for some time.