In light of the significant increase in healthcare insurance costs, the number of New Yorkers opting for private health insurance through the New York State Affordable Care Act (ACA) marketplace has seen a decline since the beginning of this year. According to the state government’s latest preliminary data, as of early January this year, only 206,427 people had enrolled in private insurance through the state-level ACA marketplace, a decrease of approximately 3% compared to the same period last year.
This trend is in line with the ACA enrollment data released by other states and at the federal level in early January across the United States.
However, this does not necessarily mean that the overall healthcare insurance coverage in New York State is decreasing. State government data shows that the number of individuals enrolled in the Essential Plan, a government-subsidized basic health insurance plan for low-income populations, continues to increase. As of early January, the enrollment in this plan increased by 6% from last year, partially offsetting the impact of the decline in private insurance.
New York State Health Department spokesperson Danielle DeSouza stated that the number of individuals enrolling through the ACA marketplace was “significantly low” leading up to the December 15 deadline. However, many individuals have delayed enrolling post-deadline, and New York residents can still enroll in the 2026 ACA health insurance plan until the end of this month.
Nevertheless, the state government is concerned that some enrollees may choose to drop their insurance upon receiving their first premium bill due to the sharp increase in premiums, potentially resulting in a further decrease in the actual number of insured individuals.
Some analysts point out that this year’s significant premium hike is directly linked to the expiration of federal government ACA premium subsidies at the end of 2025. Despite efforts by Democratic lawmakers in Congress to extend these subsidies, an agreement was ultimately not reached, rendering some individuals no longer eligible for subsidies or facing substantial reductions in the subsidy amounts they can receive.
The average ACA premiums in New York State have increased by around 40% this year. The state government estimated last year that approximately 140,000 New York residents who had previously benefited from federal subsidies would have to pay an average of an additional $114 per month this year, resulting in an annual increase of nearly $1,400 in premium expenses, further burdening the middle class and self-employed populations.