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New York regulators approve smaller 2027 premium hikes for health insurers
DFS set average 2027 increases of 6% for individual plans and 8% for small-group plans, while saving about 860,000 enrolled New Yorkers roughly $1.6 billion versus insurer filings.
New York’s Department of Financial Services approved lower premium increases for health insurers for the 2027 renewal season than carriers had requested, widening the gap that reflects the state’s pricing decisions ahead of open enrollment. According to Insurance Business, DFS authorized average increases of 6% for individual market plans and 8% for small-group plans covering employers with fewer than 100 workers, cutting insurer requests of 20.6% and 23.7%, respectively.
DFS said the reductions will save about 860,000 enrolled New Yorkers approximately $1.6 billion compared with the rates insurers initially filed. However, the approved averages mask large differences across carriers, with MVP Health Plan receiving approval for a 13.6% average increase, while MVP Health Service Corp. was approved for 5.6% versus a requested 12%.
CDPHP, a Schenectady-based carrier, was approved for a 9.7% small-group increase compared with a 14.1% request, and Highmark was the only small-group carrier receiving no rate increase after it sought 9.2%. A spokesperson for MVP Health Care attributed its increases to rising medical and pharmacy costs and higher utilization.
Eric Linzer, president and CEO of the New York Health Plan Association, said the approved rates do not fully reflect key premium drivers, including hospital and drug pricing and new taxes on health plans. Insurance Business noted New York health care spending averages about 30% above the national average, while hospital costs grew 7.5% in 2025, more than double hospital price growth, according to the American Hospital Association.