NY Health Insurance Exchanges Will Halve Costs for Individuals

The cost rates of insurance in the New York healthcare exchange are expected to be drastically reduced for most consumers in the state.

The cost rates of insurance in the New York healthcare exchange are expected to be drastically reduced for most consumers in the state.This week, NY Governor Andrew Cuomo announced that the NY state exchanges will include 17 insurance companies offering health coverage, including 8 insurers who do not currently offer commercial health insurance. Aetna, Empire BlueCross BlueShield, and Healthfirst New York are only some of the many competitors to be approved.

“New York’s health benefits exchange will offer the type of real competition that helps drive down health insurance costs for consumers and businesses,” Governor Cuomo said in an official release. “The opportunity to choose among affordable, quality health insurance options will mean improved health outcomes, stronger economic security, and better peace of mind for New York families."

Coverage for the plans range from bronze, the lowest and cheapest tier, to the increasingly more expensive silver, gold, and platinum tiers. For New Yorkers, a silver plan covers an average of 70% of medical costs at about $359 a month for a single adult in Manhattan. That same plan would cost $1001 a month on the current market’s plan offerings. Even more, because prices will range depending on a consumer’s region, a resident in Rochester, NY, may obtain a silver plan for only as little as $276 a month, essentially halving current payments.

NY state officials estimate that more than 600,000 people are expected to buy lower cost coverage within the first few years of the state exchange, with more than half of those being eligible for federal subsidies.

Joanne Peters, a US Health and Human Services Department spokeswoman, said, “We’re seeing in New York what we’ve seen in other states like California and Oregon—that competition and transparency in the marketplaces are leading to affordable and new choices for families.”

As October enrollment dates approach, other participating states are anticipated to release detailed information about their respective exchange rates and insurer participants.

Around the Web

Governor Cuomo Announces Approval of 2014 Health Insurance Plan Rates for New York Health Benefit Exchange [NY.GOV]

New Yorkers to See 50% Drop in Health Insurance Costs in Obamacare Exchange [CNN]

New York Health Exchanges Offer 50% Drop in Premiums [Bloomberg]