2027 NYS Community-Rated Health Plan Rates Have Been Approved. What does that mean for employers?

The NYS Department of Financial Services (DFS) has approved 2027 premium rate increases for community-rated health plans in New York. Community-rated plans include employer groups with 100 or fewer eligible employees and 100 or fewer enrolled employees on their medical plan.

So, what does this mean for your organization?

It’s important to understand that these percentages represent the average rate increase across a carrier’s community-rated book of business. An individual employer’s renewal may differ from the published averages based on factors such as plan selection, benefit design, rating region, and other applicable variables.

At this time, carriers have not yet released employer-specific renewal information. GKG’s Employee Benefits Team expects to begin receiving renewal rates and plan details over the coming weeks and will review those results with clients as they become available.

What’s Driving These Increases?

Health insurance carriers continue to face several cost pressures, including:

• Increased utilization of healthcare services
• Rising hospital and provider costs
• Higher pharmacy expenses, particularly specialty medications
• Growing costs associated with chronic conditions and complex medical claims
• Regulatory and risk adjustment program expenses

While these trends influence overall healthcare costs, they are largely outside the control of individual employers and employees.

What Can Employers Control?

Although employers cannot control market-wide healthcare trends, there are several areas that can meaningfully impact both costs and employee experience:

• Plan design and benefit strategy
• Employer and employee contribution structures
• Employee engagement and healthcare consumerism
• Funding alternatives such as HSAs and HRAs
• Carrier evaluation and market comparisons

These are all areas where the GKG Employee Benefits team can help assess options and develop a strategy aligned with your organization’s goals.

Looking Beyond Traditional Renewals

For some small and mid-sized organizations, renewal season may be a good time to evaluate alternative approaches. Depending on employer size, workforce demographics, and organizational objectives, solutions such as a Professional Employer Organization (PEO) may offer access to different benefit structures, additional purchasing power, or administrative efficiencies.

While not the right fit for every employer, it’s one of several strategies worth considering as part of a broader benefits conversation with your GKG Team.

What’s Next?

For now, sit tight. As renewal information becomes available, your GKG team will review your organization’s specific rates, discuss any carrier or plan changes, and help identify the most appropriate path forward.

Remember: the rate filing headlines tell only part of the story. Our focus is helping clients evaluate the factors they can control and develop a benefits strategy that supports both their employees and their organization.

If you have questions in the meantime, please contact your GKG Employee Benefits Team.