Health-insurance premiums in the
Health insurers had requested an average rate increase of 12.3 percent, DFS said in a news release.
Premium rates for Excellus BlueCross BlueShield's smallgroup health plans in the state will rise by 10.7 percent in 2017. Excellus had requested an average increase of 12.3 percent, according to DFS data.
More than one million New Yorkers are enrolled in small-group plans.
The coming premium increases will be much higher in
State insurance regulators approved a 16.6 percent average hike in premiums, below the 19.3 percent average increase that insurers had sought DFS said.
"Like other states throughout the nation," the 2017 rate of increase for individuals in
More than 350,000 New Yorkers are enrolled in an individual plan on NY State of Health,
The main drivers of premium-rate increases are rising underlying medical costs, which according to DFS, is "reflecting a nationwide trend."
For the announced 2017 rates, DFS estimated that insurers' average increase in expected insurance claims paid was about 7 percent for the individual market and 8.5 percent for the small-group market
Inpatient hospital and drug costs account for the largest share of medical expenses (more than 40 percent), followed by ambulatory surgery (12 percent) and diagnostic testing/ lab/x-ray (11 percent).
The largest growth in spending occurred in drugs, with "very large" increases attributable to Hepatitis C drugs (54 percent unit-cost increase and 14 percent more use of the drug), DFS said.
The balance goes to paying for insurer administrative costs and profit
For individual and small-group policies, that minimum requirement called the minimum-loss ratio, is 82 percent
The 2017 rates that DFS approved estimate that insurers will spend "even higher" percentages on health-care costs, an 85.5 percent overall average for small-group plans and an 87.2 percent overall average for individual plans, the department said.