Double-digit health insurance rate increases coming for some WNY small group, individual plans [The Buffalo News, N.Y.]

Sep. 1—Small group and individual health insurance plans across the state and in Western New York just got much more expensive.

The state Department of Financial Services on Thursday announced it had approved health insurers' premium rate increases for 2024. Overall, the state reduced insurers' requested rates by 44% in the individual market, and by 52% for small groups, collectively saving the 1.05 million New Yorkers enrolled in those plans almost $732 million, the department estimated.

But even after the adjustments, however, many health plans — including the three dominant players in Western New York — landed double-digit percentage increases, highlighting how higher medical costs and inflation are placing upward pressure on premiums. In announcing the approved rates, the state called particular attention to inpatient hospital stays and escalating drug prices as two of the main drivers behind the increases.

Here's how it shakes out in Western New York:

— Highmark Western and Northeastern New York, which includes Highmark Blue Cross Blue Shield of Western New York, had requested an increase of 22.6% for individuals — 6,612 members are enrolled in these plans — but the state approved an increase of 13%. For small group plans, in which Highmark has 47,121 members, the insurer sought an increase of 22%, but the state knocked that down to 14.2%.

— Meanwhile, Independent Health requested an increase of 39.2% in the individual market, where it has 10,603 members, but the Amherst-based health plan was approved for a 25.3% increase. On the small groups, in which Independent Health lists 46,865 members, the insurer sought an increase of 16.8%, but the state accepted a 14.8% jump.

— Excellus Health Plan, which includes Univera Healthcare, requested an increase of 15.2% in the individual market, in which the health plan has 25,677 members enrolled, but the state approved a 12.2% increase. For small group plans, in which Excellus lists 145,429 members, the health plan wanted an increase of 12.6%, but the state lowered that slightly to 12%.

The rate adjustments affect people who buy individual commercial health insurance and small employers with 100 or fewer full-time workers, together comprising a small slice of members for most insurers. The rate increases do not affect large employers with more than 100 workers.

Other insurers with a presence in Western New York also requested and were approved for increases.

MVP Health Plan was approved for a 6.5% increase in the individual market and a 10.3% bump for small groups. The insurer had requested an individual market bump of 13.3% and a small group increase of 11%.

United Healthcare, which wanted a 20.9% increase for individuals and a 12.5% bump for small groups, was approved for a 12.2% increase for individual market plans and 2.7% in the small group market.

The New York Health Plan Association, which represents 27 managed care health plans, said the rates health plans submitted in May to the state reflect increases in what hospitals and physicians are charging, double-digit growth in the price of prescription drugs and government taxes on health insurance.

"Given these factors, greater focus is needed to rein in the escalating costs hospitals, providers and drug companies are charging to provide relief for consumers and employers," association President and CEO Eric Linzer said.

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