Health insurance premiums will increase next year for New York residents. It is estimated that they will rise 6.8% for individuals and 7.9% for employers who utilize New York’s insurance marketplace. The rising rates are due to increasing drug and hospital costs.
The Department of Financial Services approved the rate hikes, stating that they have prevented rate insurers from seeking the amount they initially requested. Rate insurers originally wanted to increase premiums to 9.2% for indivduals and 12.2% for employers. The agreed upon rate increases will save consumers approximately over $50 million and small businesses more than $313 million.