Health Insurance Rates to Dramatically Increase in 2015

Photo Credit: REUTERSNew Yorkers will have to dig a little deeper into their wallets for health insurance in 2015, state officials announced Thursday.

Rates for individual insurance plans – including those offered on New York’s Obamacare exchange – will rise on average 5.7% in the coming year, the state’s Department of the Financial Services reported. The increases, however, are only about half the amount sought by those insurers in their initial rate requests submitted this summer.

“We closely scrutinized the proposed rate increases insurers requested and reduced them significantly where appropriate,” said Financial Services Superintendent Benjamin Lawsky. “While we have made substantial progress in reforming our health care market and holding down costs, there is much more work ahead. We will continue to engage with consumer groups, insurers, providers, and other stakeholders as we move forward with that effort.”

Lawsky said the new rates are sill, on average, about 50% lower than those charged before New York rolled out its Obamacare health exchange last year. The state held the line on increases despite a projected 8% increase in overall health care costs.

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