7/30/2026

Proposed Small Group Health Insurance Rate Filings in New York for 2027: What Employers Need to Know

Every year, health insurance carriers submit proposed premium rate changes to New York State’s Department of Financial Services (DFS) for review. This spring, carriers filed their 2027 requests — and for small group employers, the numbers are significant.

The Big Picture

New York’s small group carriers are requesting an average rate increase of 25.7% for plan year 2027, effective January 1. That’s a steep jump that, if approved as filed, would represent a significant year-over-year premium increase for employers with up to 100 employees.

For context, DFS has historically reduced carrier requests before issuing final approvals. Over the past three years, approved increases came in at 7% (2024), 8% (2025), and 13% (2026) — all well below what was originally filed. Even if DFS reduces the requested increases, employers may still face a meaningfully higher outcome than in some recent years. What Carriers Are Requesting

What Carriers Are Requesting

The range of proposed increases in the small group market varies widely by carrier:

Carrier	Proposed Rate Change
UnitedHealthcare Insurance Co. of NY	+42.1%
Oxford Health Insurance Inc.	+34.5%
MVP Health Plan	+19.6%
Anthem HealthChoice (formerly Empire)	+20.4%
Excellus	+17.0%
Emblem (HIP)	+14.2%
MVP Health Service Corp.	+12.0%
IHBC	+11.4%
CDPHP	+14.1%
CDPHP Universal Benefits Inc.	+10.1%
Highmark (formerly HealthNow)	+9.2%

UnitedHealthcare and its Oxford subsidiary are the clear outliers, with requests well above the market average. On the lower end, Highmark and CDPHP filed the most modest requests — both in the single- to low-double digits.

What’s Behind the Increases

Carriers are pointing to several compounding factors:

Rising hospital and healthcare provider costs driven by an aging population and increased utilization
Surging prescription drug costs, particularly specialty medications and GLP-1 drugs
New York-specific regulatory costs, including state mandates requiring coverage for treatments beyond national health organization recommendations and approximately $6.6 billion in annual carrier taxes, assessments, and surcharges
Uncertainty in the individual market stemming from the expiration of enhanced ACA premium tax credits at the federal level

These pressures are not unique to New York — the national median proposed ACA marketplace increase for 2027 is approximately 14% — but New York’s regulatory environment tends to amplify cost growth for fully insured plans.

What Happens Next

DFS is now reviewing the filings, supporting actuarial materials, and any submitted public comments before issuing final approved rates later this summer. Those approved rates will govern coverage effective January 1, 2027.

What Employers Should Be Thinking About Now

For small group employers currently on fully insured plans in New York, now is the time to take a proactive look at your options:

Shop the market. With such a wide range in carrier requests, there may be meaningful cost differences at the carrier level — even within the same plan design.
Evaluate alternative funding models. Level-funded and self-funded arrangements are not subject to New York’s community rating or many of the state mandates that drive up fully insured premiums. Depending on employer size, claims experience, risk tolerance, stop-loss terms, and administrative capacity, these models may offer savings for some groups but are not appropriate for every employer.
Plan ahead. Starting the analysis early puts your organization in the strongest negotiating position before final rates are approved.

The 2027 renewal cycle is shaping up to be a challenging environment for fully insured small group employers in New York.

Employers who engage early and explore all available options will be best positioned to manage costs without compromising the quality of their benefits programs.

For more information about your 2027 renewal options, contact your Sentinel Group benefits consultant.

This information is for general educational purposes only and is not legal, tax, or benefits advice. Coverage, funding, and renewal decisions should be evaluated based on each employer’s specific circumstances.