Payers cite COVID-19, inflation for high rate hike proposals in New York

Payers in New York are seeking higher premium rate increases for 2023, citing inflation and ongoing costs associated with the COVID-19 pandemic, the Journal News reported June 21.  

New York payers are seeking an average rate increase of 18.7 percent for individuals and 16.5 percent for small group plans, the Journal News reported.  

COVID-19 issues affecting payers include the cost of testing, treatment and vaccines as well as an influx of New Yorkers seeking care deferred earlier in the pandemic, according to the report. 

The New York Department of Financial Services, which regulates insurers, will review the rate proposals and consider adjustments before finalizing rates in August, according to the report. 

Historically, the regulator has significantly reduced the rates from those sought by insurers, according to the report. Last year, payers sought an average rate increase of 11.2 percent for individuals and 14 percent for small group plans. Regulators approved average rate increases of 3.7 percent and 7.6 percent, respectively. 

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