New York's health insurance rate increases for 2027 have been approved for health plans selling coverage through the state-run Affordable Care Act marketplace.
The state Department of Financial Services announced on Friday, Sept. 4, that the health insurance rates for individuals will increase 6% on average next year while small-group plan rates rise 8%.
Those premium rate increases came in well below the proposed rates sought by health insurers, which requested rate hikes of 20.6% and 23.7% for individuals and small group plans, respectively. According to DFS, rejecting the proposed rates to arrive at the approved rates saved around 860,000 New York consumers and small businesses around $1.6 billion.
The individual rate increases for next year
vary from a high of 12.2% through Highmark or Excellus to a low of a 3.1% reduction for Anthem HP. On the small group market side, Anthem HealthChoice Assurance, Inc. members will see a 14.4% increase, while those with Emblem (HIP) will have a 0.7% reduction in cost.
Here's what to know.
What health plans say about rate increases
The New York Health Plan Association, which represents insurers, asserted the approved rates "fail to fully account for the major factors driving premiums," in a statement released by the group's President and CEO Eric Linzer on Friday. Those factors, he said, include significant price increases charged by hospitals, providers and drug companies as well as new mandated benefits and taxes on health insurance.
Linzer also defended the requested rates, saying they're a reflection of the state's health care costs, which he stated are "among the highest in the country."
"Suppressing rates in the name of affordability does nothing to contain the cost of care," Linzer added. "Instead, it ignores the ongoing escalation of provider and pharmaceutical prices."
"With consumers already facing significant disruption due to federal actions," the statement continued, "these rates make it increasingly challenging for health plans operating in the individual and small group markets and risk undermining the stability of the marketplace."
How much have NY health insurance rates increased in the past?
Rates for individual plans in 2026 increased by an average of 7.1% and small-group plan rates increased by 13%, according to state records.
And according to previous USA TODAY Network reporting, the average rates for individual plans from 2019 to 2023 increased by a total of 31.4% with an average yearly rise of around 6%. Small-group plans increased 30.6% over that same period.
For further details about specific insurers' proposed rate increases for 2027, visit the state regulatory agency's website, at dfs.ny.gov.
Emily Barnes covers state government for the USA TODAY Network-New York with a focus on how policy and laws impact New Yorkers' taxes, communities and jobs. Follow her on Instagram or X @byemilybarnes. Get in touch at ebarnes@usatodayco.com.
This article originally appeared on Rockland/Westchester Journal News: NY health insurance rate hikes approved. How much you will pay in 2027
