State’s Power to Limit Health Insurance Rate Hikes Will Save Millions, Cuomo Claims

Governor Andrew Cuomo says new state power to limit rate hikes will save New Yorkers more than $500 million on health insurance premiums in 2013.

Cuomo announced recently that health insurers requested average increases of about 12.4 percent, but the State Department of Financial Services cut the average increase to 7.5 percent.

The rate actions under a 2-year-old law affect health insurance policies covering about 2.3 million New Yorkers, mostly in small groups, plus people covered by large group HMOs, individual direct-pay plans and Medicare supplement policies.

Cuomo said holding back rates is one part of making sure health insurance is available to all New Yorkers. He said much more must be done to restrain the rising cost of health care.