The expiration of federal aid that has helped subsidize insurance premiums could mean the loss of their health insurance for about 20,000 New Yorkers, state officials warned Monday.
The NY State of Health, the state health insurance market, published a report by examining the market impact of federal grants, it was found that premiums for eligible recipients would be 58% higher.
This could mean additional costs of up to $1,450 per year, according to the report. Many affected New Yorkers are low-income and live in communities of color.
Subsidy changes could also reverse long-term trends of fewer uninsured people in the state.
“Given the ongoing COVID-19 pandemic, the importance of having access to and maintaining health coverage as a gateway to healthcare has never been of such global significance,” said NY State Health Executive Director Danielle Holahan. “Without an extension of these subsidies, New Yorkers will receive notice of a large premium increase in October before the annual open enrollment period, and we expect tens of thousands of New Yorkers to forgo coverage. that they feel they can no longer afford.”
Federal assistance from the American Rescue Plan has reduced health insurance costs for those enrolled in the Qualified Health Plan. Eligibility has been expanded to include more New Yorkers with higher incomes, as well as people who have lost their jobs or income during the pandemic. The federal money will not extend through 2023.
Health insurers have asked for individual market premium rates of 18.7% for 2023, the biggest proposal since 2019.