“New York insurers asked for large premium increases for 2017 as a way to counteract rising costs, and in some cases, gargantuan losses.
Insurers selling plans to individuals requested a 17.3% average increase and those selling small-group plans asked for an average 12% rate hike. The state insurance marketplace, known as New York State of Health, has seemed to be more stable than other markets nationally, but insurers here haven’t been immune to national trends that are driving up health care spending and increasing the costs of providing health insurance.
The New York Health Plan Association said the hikes are necessary. “The 2017 rate submissions reflect increases that are the direct result of the underlying cost of care and marketplace changes that continue to impact health plans’ operations,” Paul Macielak, HPA’s president and chief executive, said in a statement. Three main reasons for higher premiums are generally always cited: Medical costs have gone up, government programs that helped cover costs are ending, and insurance customers need and use more medical care than insurers and the government expected. Source: “Modern Healthcare.”