The average cost of New Yorkers’ health benefits increased by less than the national average in 2019 but remained among the highest in the U.S., according to recently published federal data.

The average cost for family coverage rose 4 percent to $22,874, which was 12 percent above the national average and second only to Alaska, according to an annual survey of private-sector employers by the U.S. Agency for Healthcare Research and Quality (see first chart).

The average cost of single coverage rose 2 percent to $7,890, which was 13 percent above the national average and third behind Alaska and Delaware.

Those increases were a bit lower than the nationwide jumps of 5 percent for family coverage and 4 percent for single coverage.

Still, all of those figures were two or three times the general inflation rate – continuing a long-term pattern for New York and the U.S.

New York’s insurance has traditionally been more expensive than national norms, but the gap has been getting wider in recent decades (see second chart).

The state’s high cost of living is likely a factor, especially in the New York City area. State policy also drives up premiums by heavily taxing health insurance and continually adding to a long list of coverage mandates.

Source: Agency for Healthcare Research and Quality
Source: Agency for Healthcare Research and Quality

 

About the Author

Bill Hammond

As the Empire Center’s senior fellow for health policy, Bill Hammond tracks fast-moving developments in New York’s massive health care industry, with a focus on how decisions made in Albany and Washington affect the well-being of patients, providers, taxpayers and the state’s economy.

Read more by Bill Hammond

You may also like

New York Has Widened Its Lead in Per-Capita Spending on Medicaid

New York's per-capita Medicaid spending soared to more than double the nationwide rate in 2018, widening its gap with the other 49 states. Read More

New York’s Medicaid Enrollment Surges to an All-Time High

New York's Medicaid program is growing at its fastest rate in six years, with a quarter-million additional enrollees landing in the safety-net health plan during the first three months of the coronavirus pandemic.  Read More

New York’s Medicaid Roller Coaster Takes an Unusual Turn

The state's Medicaid spending was significantly lower than projected in the first quarter, but that's not necessarily a positive sign for state finances. Read More

Filling in the Blanks of New York’s Coronavirus Pandemic

Because New York was hit with the coronavirus early, before testing was widely available, its official count of infections – at just over 400,000 – vastly understates the scale of its outbreak. Read More

Cuomo Administration Ducks Important Questions on Nursing Homes

A new report from the state Health Department tries to deflect blame for thousands of coronavirus deaths in the state's nursing homes—but undermines its own case by withholding data and engaging in tendentious analysis. Read More

Nursing Home Vacancy Rate Soars, Hinting at a Higher Coronavirus Toll

The vacancy rate in New York's nursing homes has more than doubled since the start of the coronavirus pandemic, suggesting that the death toll among residents may be thousands higher than officially reported. Read More

Unsure of COVID Impact, NY Insurers Roll Dice on Rate Hikes

The health insurance industry's rate applications for 2021, , reveal deep uncertainty about the long-term impact of the coronavirus pandemic on medical costs. Some companies anticip Read More

Hospitalization rising in some areas

Coronavirus hospitalizations are surging in parts of upstate, including three regions that the Cuomo administration authorized to begin reopening today. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.