As HCFANY blog readers know, New York State re-instated prior approval of health insurance premium increases in 2010, before the ACA passed. But the ACA has provided funding – including a $4.4 million grant the Department of Financial Services (DFS) won in September – to strengthen the State’s prior approval process.
This fall, DFS reviewed premium increase proposals to take effect on January 1. The insurers asked for weighted average increases of 12.7 percent, but the Department only allowed them to increase premiums by 8.2 percent, saving consumers more than $400 million in 2012.
The ACA will do even more to bring down premiums through the New York State Exchange. The Exchange will bring down health insurance costs for those in the individual market down by as much as 66% and for employees in the small group market by as much as 22%, according to an analysis conducted by the Urban Institute for the State of New York.
So what are we waiting for? Let’s get the Exchange legislation passed already!