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New York health insurance premiums will jump 12.4% in 2024

  • / Updated:
  • Staff Report 

New York residents are set to face a rise in health insurance rates in 2024. Individual plan rates will see an average increase of 12.4%, whereas small-group plan rates are expected to jump by 7.4%, according to state records.

This surge is a moderated figure compared to health insurers’ initial request for nearly 21% and 15% hikes for individual and small-group plans, respectively.

The State Department of Financial Services attributes this steady climb in premium rates to the escalating costs of medical care, notably the price spikes in drug rates and in-patient hospital stays.

The finalized 2024 rates are expected to maintain insurers’ profit margins at a mere 1%, a move state officials claim is in response to the current inflation adversely affecting consumers.

Finger Lakes Partners (Billboard)

Over 1 million New York inhabitants who rely on individual or small group plans through private insurers or the NY State of Health exchange will be impacted by these new rates. From 2019 to 2023, the average rates for individual plans saw a cumulative hike of 31.4%.

The Health Plan Association emphasizes that the escalating health care service rates, significantly higher than the national average, play a crucial role in New York’s premium rates being among the steepest in the nation. The Association, while advocating for controlling health care costs, also highlighted the effects of government taxes on insurance rates. State regulators, defending their approval of moderated rate increases, pointed out that their intervention saved New Yorkers approximately $732 million in potential health insurance premiums.