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State announces health insurance premium rates

Aug 15, 2021 5:30 am

Randy Gorbman is reporting for WXXI-FM the New York State Department of Financial Services has announced 2022 health insurance premium rates. The agency cut the rates requested by many insurers, reducing rates in the small group market for employers with 100 or fewer employees, by nearly half. Insurance companies had requested rate hikes averaging 14 percent; and the state cut them to 7.6 percent, saving small businesses more than $468 million. In the individual market, rates will increase by 3.7 percent. Insurance companies requested an average increase of 11.2 percent in that market. The department said, as in prior years, the continued increase in health care costs is the main factor in setting the cost of premiums. According to the Department of Financial Services, medical claims decreased significantly in 2020 due to the postponement of elective and non-emergency services due to COVID-19. However, those claims increased significantly in 2021 as New Yorkers got caught up on medical appointments and postponed services. Drug costs account for the largest share of medical expenses at 38.7 percent, followed by inpatient hospital costs at 17.3 percent. Read the full story at wxxinews [dot] org.