New York state officials have announced the decision on requested health insurance premium rates proposed by insurers across the state for 2025.
The New York State Department of Financial Services said in a statement released last week that the changes it made to the requested rate hikes have, in total, saved consumers and small businesses approximately $853 million.
The state reduced the requests for increases for individual health plans by 23%, and in the small group market by 55%.
The department's decision works out to an overall average rate increase for the small group market to 8.4%. Small group plans cover employers who have up to 100 employees.
The rate hike for the individual market was reduced to 12.7% for next year.
Among companies across upstate New York that have a large presence, Excellus BlueCross BlueShield was seeking an average rate increase of 19.5% for both individual and small group members.
The state reduced the increase for individual Excellus subscribers to 18.3%, and for small group members to 10.5%.
The department said that the rising cost of medical care, including inpatient hospital stays as well as rapid increases in drug prices, continue to be main drivers of health insurance premium increases.
The New York Health Plan Association, which represents 26 managed care health plans across the state, issued a statement saying that the proposed rate hikes in premiums reflected the high cost of health care in the state, including price increases from hospitals and other providers and “out-of-control price increases” that pharmaceutical companies charge for prescription drugs.
The statement also said the final approved insurance rates by the state “fail to fully recognize these factors or account for the premium reductions the state has imposed the last several years.”
