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New York limits rise in health insurance ratesPosted On Fri, June 11, 2010
Health insurance rates across the country are skyrocketing as insurers prepare for the coming changes mandated by the health care bill, but New York has already put a bill in place to ensure that it doesn't happen there.
New York Governor David Patterson signed a bill that allows the state to block any proposed health insurance premium increases that it deems excessive, the New York Times reported. The law, which covers roughly three million people enrolled in insurance plans through small businesses or individually, requires insurers to apply to the state Insurance Department before raising rates. The state will then make a judgment on the rate hike within 60 days.
New York has the highest average premiums in the country, the Times said. The annual rate of $6,630 for single people and $13,296 for families was more than double the national average. The prices forced many small businesses and individual policyholders to drop their coverage.
An Insurance and Financial Advisor report said that the bill will take effect on October 1 and governs mainly medical loss ratios. The measure is intended to bridge the gap in regulation prior to the new federal laws taking effect next year.
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