ALBANY, NY — New York health insurers sought premium increases that were three to four times larger than what state regulators ultimately approved for 2027, setting up a costly renewal season for individual policyholders and small employers. The Department of Financial Services approved average increases of 6% for individual market plans and 8% for small-group coverage used by employers with fewer than 100 workers.
Those decisions cut requested increases of 20.6% and 23.7%, respectively. DFS said the reductions will save about 860,000 enrolled New Yorkers roughly $1.6 billion compared with what carriers originally filed. Even so, the approved rates still mean many customers will pay more next year as open enrollment approaches and benefits advisers work through renewals.
Approved averages mask major differences by insurer
The statewide averages tell only part of the story. Individual companies received very different outcomes, and those variations will shape what employers and consumers actually see in their renewal notices.
In the small-group market, MVP Health Plan was approved for a 13.6% average increase, even after state intervention, well above the 8% market average. MVP Health Service Corp. received approval for a 5.6% increase after asking for 12%. Schenectady-based CDPHP was approved for a 9.7% increase, down from its requested 14.1%. Highmark is the only small-group carrier approved for no rate increase, though it had sought 9.2%.
For many buyers, that means the practical experience of the 2027 renewal season may feel quite different from the headline numbers released by regulators.
Insurers point to medical, pharmacy and tax pressure
Michelle Golden, a spokesperson for MVP Health Care, said the company’s higher costs were driven by rising medical and pharmacy spending as well as increased use of care. That explanation fits a broader pattern insurers say they are dealing with across New York and beyond.
Eric Linzer, president and CEO of the New York Health Plan Association, said the approved rates do not fully reflect the forces behind premium growth. He pointed to hospital pricing, prescription drug costs and new taxes on health plans as major contributors.
“Suppressing rates in the name of affordability does nothing to contain the cost of care,” Linzer said. “Instead, it ignores the ongoing escalation of provider and pharmaceutical prices.”
Why New York premiums keep running ahead of national trends
New York’s healthcare spending averages about 30% above the national average, according to the Health Care Cost Institute, leaving insurers with a higher-cost environment than many carriers face elsewhere. That broader cost structure helps explain why requested increases often come in well above what regulators eventually allow.
The insurers’ concern is not just about this year’s filings, but about the underlying math behind care delivery. Hospital costs in the United States grew 7.5% in 2025, more than twice the rate of hospital price growth, according to the American Hospital Association. When volume and utilization rise alongside prices, carriers say their projections climb quickly.
Those pressures do not disappear when DFS trims a filing. They simply remain embedded in the next round of negotiations and renewals.
Small employers will feel the 2027 renewal season first
The approved increases matter most to small businesses, where health benefits are often one of the largest operating expenses. Employers with fewer than 100 workers will be among the first to see how the 2027 rates affect budgets, employee contributions and coverage choices.
Benefits advisers are already working through those renewals, and the difference between a requested increase and an approved one can change how a plan is priced for a group. Still, even the lower approved rates represent a meaningful jump for many employers trying to hold down costs while keeping coverage in place.
DFS said its actions will moderate the impact, but the market remains under pressure from the same medical and pharmacy costs that have pushed insurers to ask for larger increases.
CDPHP says efficiency matters, but outside costs keep rising
Barry Thornton II, CEO of CDPHP, said the company is focusing on administrative efficiency while continuing to try to deliver affordable coverage. He said the plan is still under pressure from drug prices, hospital costs, taxes and changes to the Medicare Wage Index.
That mix of pressures underscores why the debate over premiums is not limited to one company or one renewal cycle. Regulators can lower what insurers ask for, but they do not control the broader cost drivers that feed into future filings.
For New Yorkers in both the individual and small-group markets, the result is a familiar one: state action may soften the increase, but it does not erase it.
