New York-based insurance companies wish in hike premium rates on average of 11.7 percent for the 2021 year. Why? Because they say costs are growing due to the coronavirus outbreak. These projections were made public by the Department of Financial Services recently. Government authorities have yet to make a public comment to address growing concerns about already skyrocketing costs, especially since an increasing number of residents are uninsured after losing jobs.
One Manhattan-based insurer wants to increase rates a whopping 19 percent.
Shockingly, the rate hikes were called “reasonable and fair” by the New York Health Plan Association. According to the group, rate hikes would correspond to rising health care costs, most of which were do to COVID-19, a disease which has already resulted in 24,000 NY fatalities — nearly the number of deaths in a typical flu season, nation-wide.
NYHPA President Eric Linzer said, “From the outset and throughout the continuing coronavirus crisis, New York’s health plans have made extraordinary efforts to meet the needs of consumers, businesses and our health care partners. This has included waiving copayments and cost sharing for COVID-19 testing, telehealth services and mental health services for essential workers, and providing cash advances and other support to hospitals, physician practices and others in the delivery system to address the financial uncertainty they’re facing.”
Nothing, as they say, comes free. The services recently offered without cost are the basis for most of the expected rate hikes in 2021. In 2019, eight companies with a public IPO made over $21 billion — which constituted a massive 31 percent increase in profit over the previous year. Basically, no one should believe that these companies actually need to increase their rates.
Do you believe you were taken advantage of by a health care company during the coronavirus crisis? Did you lose coverage at the most inopportune time? Insurance litigators want to hear your story — and we might want to build your case. You deserve compensation more than they do. Don’t forget it.