New York Health Plan Association on Health Care Costs: New Issue Brief Examines Cost Drivers Impacting Health Insurance Premiums

By New York Health Plan Association | June 17, 2022

The New York Health Plan Association (HPA) today issued a new policy brief, Health Insurance 101: Understanding Health Care Premiums, that examines the drivers of rising health care costs affecting health insurance premiums. The key factors examined include:

  • Costs related to COVID-19 including testing, treatment and vaccines, as well as care deferred during the pandemic
  • Higher prices that pharmaceutical companies are charging for prescription drug;
  • Increases in the prices charged by hospitals, physicians and other providers;
  • Mandated benefits, including several new mandates passed during the 2022 legislative session;
  • Taxes on health insurance, which add over $6.5 billion annually to the cost of health insurance, increasing the annual premium for the average family buying a policy in New York by more than $1,000.
  • The potential loss of federal subsidies included in the American Rescue Plan Act that have helped to reduce premiums for over 138,000 New Yorkers and will expire at the end of 2022.

“Health insurance premiums are directly tied to the underlying cost of care and the continued growth in health care costs further add to premiums,” said Eric Linzer, President and CEO of HPA. “Our member plans are committed to the goal of ensuring every New Yorker has access to high-quality, affordable health care and maintaining a vibrant marketplace for individuals and employers.  As the State reviews the proposed 2023 rates, it is vital that the final approved premiums fully reflect the factors contributing to the growth in health care costs.”

The issue brief is available on the HPA website at: