Cuts the state Department of Financial Services made in New York health insurers’ 2013 rate hike requests will save enrollees $500 million, Gov. Andrew Cuomo said Monday.
The state ordered the rate reductions under a 2-year-old law that restores the regulatory agency’s ability to weigh in on health insurance rate hikes. Previously, under a so-called file-and-use law the state’s health insurers had to give the department timely notice of premium increases for rate hikes to take effect Jan. 1.
Rate hike reductions the department ordered affect some 2.3 million policy holders with most of the benefit going to enrollees in small group plans, the governor said.
Cuts imposed on 2013 premium increase requests included an average 1.09 percentage point cut to Excellus BlueCross BlueShield’s proposed rate hikes and an average 1.41 percentage point reduction to rate increases requested by MVP Healthcare.
“We have made progress in holding back rates, but we recognize that much more needs to be done. This administration is firmly committed to making sure that health insurance is available to all New Yorkers. It must be made affordable by identifying ways that can be used to restrain the rising cost of health care services,” Cuomo said.
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