New York’s Department of Financial Services has issued an emergency regulation intended to help the state’s health insurers deal with a federal requirement that puts some under sharp financial stress.
The federally mandated program for adjusting financial risk under the Affordable Care Act transfers pooled funds to plans showing higher-risk clients. It has particularly affected newer and smaller insurers that have generated limited patient records.
The department says federal calculations include administrative expenses and profits and may not appropriately consider how New York’s rating structure counts children.
Under its new regulation, the department will consider whether the 2017 federal program will adversely affect New York’s small group health insurance market and implement a “market stabilization pool” to account for factors in New York.
Was this article valuable?
Here are more articles you may enjoy.
Adjusters Launch ‘CarFax for Insurance Claims’ to Vet Carriers’ Damage Estimates 
Experian: AI Agents Could Overtake Human Error as Major Cause of Data Breaches 
Georgia Republicans Move to Scrap State Income Tax by 2032 Despite Concerns 
Wildfires, Storms Fuel 2025 Insured Losses of $108 Billion: Munich Re Report 
