Why New York state regulators may reduce double

Gary Fitzgerald, president of Iroquois Healthcare Alliance, predicts health insurance cost increases next year in New York will be lower than the 13 percent average spike currently facing businesses and individuals.

Fitzgerald, who oversees the Clifton Park-based trade group representing 53 hospitals, says state regulators will reduce the proposed 2015 rates due to political pressure and uncertainty tied to the proposals.

'They're probably going to get it down to single-digit (increases),' Fitzgerald said.

We're talking about the proposed insurance rate increases for 2015, which came out earlier this month. Hearing from business owners worried about the negative effect on jobs and health care, the Albany Business Review was first to report on potential rate hikes before state officials released them on July 2.

The average increase requested by insurers is about 13 percent. But some spikes could reach as high as 36 percent, depending on the type of coverage and other factors. The state Department of Financial Services will set final rates before November, when open health insurance enrollment starts for next fiscal year. State regulators have declined requests for comment on the issue.

Fitzgerald's take on the issue comes after Bob Hinckley, chief strategy officer for Albany insurer CDPHP, defended the proposed increases. Hinckley says insurers are primarily reacting to rising health care cost, although some also are making up for recent losses and other upheaval tied to the Affordable Care Act, or ACA.

'A health insurer is not going to last very long if it keeps losing money every year,' Hinckley said.

Robinson covers breaking news and health care.