The Soapbox and Toolbox for New York State's Nonprofits

June 5, 2015

Comments Needed: Health Insurance Rate Increases and Coverage Loss Looms for Nonprofits

As you may know New York State's "Prior Approval Law" mandates that all insurance carriers notify their customers of their intent to request rate increases to the Department of Financial Services (DFS)at the same time they file those requests to the state. Many carriers file their rate increase requests in late May and early June for rates effective in January of the following year. You may have received a notice recently from your health insurance carriers. 

Developments in Health Insurance Coverage & Rates:

  • Higher than average rate increase requests have already been submitted to DFS presumably due to fees and taxes, as a result of the Affordable Care Act (ACA), coupled with carrier losses from last year. 
  • We've also seen the request for complete withdrawal of carrier offerings from certain regions in our state. 

What does this mean for nonprofits?

  • Many nonprofits qualifying for the small business tax credits will be approaching the end of their eligibility for these cost subsidies.
  • These rate increases and changes, coupled with the end of this subsidy, will make health insurance even more of a financial burden for small nonprofits in 2016.

What Can We Do?

Tell DFS how these changes will affect your organization. Health insurance customers are invited to share their thoughts and comments with DFS on the proposed changes and rate increases during a 30 day comment period that begins on the date the carrier sends the Prior Approval letter to their customers.

We encourage all NYCON members who receive these letters to share their thoughts and opinions on the proposed changes and rate increases with DFS

Submit Your Comments Online   or via mail:
NYS Department of Financial Services
Health Bureau - Premium Rate Adjustments
1 State Street
New York, NY 10004

Questions about Health Insurance for your nonprofit? 
Please contact NYCON's insurance subsidiary, Council Services Plus, for assistance.

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NYCON develops and promotes an effective and vibrant charitable nonprofit community throughout New York State.  We strengthen organizational capacity, act as an advocate and unifying voice, help to inform philanthropic giving, and conduct research and planning to demonstrate relevance and impact.