New York City small business have seen their health-insurance premiums increase by an average of 17 percent this year. Small-group HMO plan providers like GHI HMO Select and Healthnet have increased their premiums by 30 percent, while premiums at Aetna and policy rates at HIP of Greater NY rose by 20 percent, according to the Post.
The surge in costs comes after 10 years of state insurance deregulation that has allowed providers to up their premiums without getting approval from government officials. "Double-digit premium increases—coming at a time when so many New Yorkers are financially struggling—demonstrated dramatically why insurance rates must be regulated," said state Insurance Superintendent James Wrynn. "We must put in a place a system of prior approval where insurers must justify increases before raising premiums."
But insurance providers say the state is at fault for the rising cost of premiums. "The state increased taxes on health insurers by $700 million last year. The taxes now total $4.2 billion," Leslie Moran, a spokeswoman for the health insurers, told the tabloid. "The taxes have an impact. They increase each individual premium by hundreds of dollars. How about lowering the taxes?"
