New York State has the third highest hospital costs in the U.S.
A study found that it’s mostly caused by COVID. The expenses New York hospitals pay per patient increased 20% between 2019 and 2020. That means insurance premiums are on the rise, too.
Hospitals had more patients, which resulted in steep increases in cost from supplies to labor.
Only Washington State and Oregon spend more than New York per patient. Here in New York, the cost per patient comes in at $4,000.
“When we look at New York, we found that health insurance premiums have gone up almost 25 percent since 2016 and it’s likely to get even more expensive as we go forward,” said Nick VinZant, senior analyst at Quote Wizard by LendingTree.
DFS denied a rate increases of 16-18% to health insurance providers. However, they did approve rate increases of nearly 10% for individuals and 8% for small group plans like families through the New York State of Health marketplace.
“Rising medical costs and inflation continue to put upward pressure on premiums. With our rate actions announced today, we continue to prioritize the financial wellbeing of consumers while ensuring that New Yorkers have access to a robust, stable health insurance market,” Superintendent of Financial Services Adrienne A. Harris said.
According to the DFS, roughly 1.1 million New Yorkers are enrolled in individual and small group plans throughout the state. Those that have insurance through other providers will see their individual rate adjustments. Prices in all sectors of the economy have risen in 2022 with inflation at record levels.
The DFS announced they will hold insurers’ profit provisions to 0.5 percent in the individual market. The state notes that rising costs of medical care, including in-patient hospital stays and drug costs, continue to be the main driver of insurance premium rate increases, and medical claims have increased as New Yorkers catch up on medical appointments and services postponed due to the pandemic.
These rate decisions will not impact residents on the Essential Plan, which provides low or no-cost health insurance to low-income earners.