Health Insurance Rates in New York Expected To Rise By Double Digits In 2024
Health insurance rates in New York are expected to jump by double digits in 2024, according to a new report by the state’s Department of Financial Services. The report found that average premiums for individual health insurance plans will increase by 12.4%, while average premiums for small group plans will increase by 7.4%.
Why Are Rates Rising?
There are a number of factors contributing to the rise in health insurance rates in New York. These include:
- The rising cost of healthcare: The cost of healthcare is increasing at a faster rate than inflation. This is due to a number of factors, including the aging population, the increasing use of expensive medical technology, and the rising cost of prescription drugs.
- The declining number of young, healthy people enrolling in health insurance: The Affordable Care Act (ACA) has made it illegal for insurance companies to deny coverage to people with pre-existing conditions. This has led to an increase in the number of people with health insurance, but it has also led to a decline in the number of young, healthy people enrolling in health insurance. Young, healthy people are less likely to use healthcare services, so their absence from the insurance pool drives up the cost of premiums for everyone else.
- The increasing cost of prescription drugs: The cost of prescription drugs is rising at a faster rate than inflation. This is due to a number of factors, including the increasing complexity of new drugs and the lack of competition in the pharmaceutical industry.
What Can You Do?
There are a few things you can do to help offset the rising cost of health insurance in New York:
- Shop around for the best rates: There are a number of different health insurance companies in New York, so it’s important to shop around and compare rates.
- Consider a high-deductible health plan: High-deductible health plans (HDHPs) have lower premiums than traditional health plans, but they require you to pay more out-of-pocket for your healthcare costs. If you are healthy and don’t expect to use a lot of healthcare services, an HDHP can be a good option.
- Take advantage of government subsidies: If you are low-income, you may be eligible for government subsidies to help pay for your health insurance premiums.
- Enroll in a health savings account (HSA): If you have an HDHP, you can open a health savings account (HSA). HSAs allow you to save money on a pre-tax basis to pay for medical expenses.
The rising cost of health insurance is a concern for many New Yorkers. However, there are a number of things you can do to help offset the cost. By shopping around for the best rates, considering a high-deductible health plan, taking advantage of government subsidies, and enrolling in a health savings account, you can save money on your health insurance premiums.