N.Y. Launches Audit of Rising Health Insurance Rates

The New York State Department of Financial Services said it has launched a wide-ranging probe of the accuracy of the data used by insurers and health maintenance organizations (HMOs) to request health insurance rate increases.

“At a time when spiraling health insurance costs are an incredible burden for working people, it is essential that we ensure that rate requests are based on fair, accurate information that has not been manipulated,” said Benjamin Lawsky, superintendent of Financial Services. “These in-depth audits will allow us to drill down underneath the numbers to make sure they are accurate. The audits may also help us identify areas where we can take measures to help control costs.”

Audits will be funded under a $4.4 million grant won by the department from the U.S. Department of Health and Human Services. The grant was among those issued to a number of states to enhance premium rate review, improve public access and lend more transparency to the processes used to establish health insurance premiums.