New York has some of the highest health insurance rates in the country and they are about to get higher. Governor Kathy Hochul’s administration signed off on the rate increases. According to the State Department of Financial Services, rates will go up 12.7% for individual plans and 8.4% for small group policies.
The increases in any one-year are a financial hit on their own, but when you add this year’s rates to previous years’ rate increases New York’s families are paying much more – more than they can afford. From 2019-2023 rates for individual plans went up 31.4% while small group rates went up 30.6% over the same period.
“Our rates have doubled since last year,” noted Anne Marie Monahan of Center Moriches, who said she is on the state Obamacare plan. “The deductible is $13,000. Once you factor that in, the policies are just way too expensive.”
Ms. Monahan is not alone in thinking the policies are too expensive. In the inflationary economy, the country is in now with food, utility, gas, taxes, and interest rates up higher than ever, an average 6% yearly increase in health insurance premiums is more than average families can withstand. Wages are not keeping up with the higher costs of everyday needs.
Depending on which plan you have, your rates could remain flat or go up as much as 35.6 percent.
Health insurance companies requested even higher increases than were approved. The State says they kept insurer profit margins to 1% in 2025 “in light of ongoing inflationary pressures harming consumers.” State officials attribute the increase to a rise in medical costs, including hospital stays and prescription drugs.
The NY Dept. of Financial Services says, “The rising cost of medical care, including in-patient hospital stays as well as rapid increases in drug prices, continues to be the main driver of health insurance premium increases.”
New York taxes everything, even health insurance, and taxes on health insurance adds more than $1,000 to the cost of coverage for the average family. The New York Health Plan Association, representing health insurance companies, says rising prescription drug costs, including prices on 820 brand-named medications that went up this year are a big driver of increased costs.
“New York’s health care costs are among the highest in the country, and several bills that lawmakers approved this session – including restrictions on plans’ ability to contain prescription drug costs, limitations on cost sharing, and new mandated benefits – will further increase costs for consumers, employers, and labor unions,” New York Health Plan Association President and CEO Eric Linzer said in a prepared statement.
In New York, health insurance companies must submit their rate increase requests to the State Department of Financial Services. The request is reviewed along with the insurer's underlying calculations to ensure the increase is justified and not judged to be excessive.
Policyholders must be notified and can submit official comments on the rate increase request without their identifying information being revealed. The Department of Financial Services’ website lists every health insurer in New York State and anyone can review the rate increase application for their insurer.