Expiring federal aid that helped subsidize insurance premiums could lead to an estimated 20,000 New Yorkers losing their health insurance, state officials on Monday warned.
The NY State of Health, the state's health insurance marketplace, released a report examining the impact of federal subsidies in the marketplace, finding premiums for qualifying beneficiaries would be 58% higher.
That could mean additional costs of up to $1,450 a year, the report found. Many of the impacted New Yorkers are low-income people and live in communities of color.
Changes in subsidies could also reverse long-term trends of reducing the number of uninsured people in the state.
“Given the ongoing COVID-19 pandemic, the importance of having access to and maintaining health coverage as the gateway to accessing health care has never had such global significance,” said NY State of Health Executive Director, Danielle Holahan. “Without an extension of these subsidies, New Yorkers will receive notice of steep premium increases in October ahead of the annual open enrollment period, and we expect tens of thousands of New Yorkers to forgo coverage they feel they can no longer afford.”
Federal aid from the American Rescue Plan enabled a reduction in health insurance costs for those who are enrolled in the Qualified Health Plan. Eligibility was expanded to include more higher income New Yorkers, as well as people who lost their jobs or income during the pandemic. The federal money will not extend into 2023.
Health insurers requested rates of 18.7% for the individual market premiums for 2023, the largest proposal since 2019.