New York requires insurers to defer premium payments until June for individuals, small businesses facing financial hardship

New York Gov. Andrew Cuomo
New York Gov. Andrew Cuomo announced Thursday the state is demanding insurers defer premium payments through June for small businesses and individuals having financial hardship due to COVID-19. (Diana Robinson/CC BY-NC-ND 2.0)

New York’s state government has required insurers to not collect premiums for the next two months from the state’s individuals and small businesses experiencing financial hardship due to COVID-19.

The plans will still be required to pay claims for the individual and small group plans through June 1. Health plans also cannot report late payments to credit rating agencies during this period, according to the announcement made Thursday.

The government added it is prohibited under state law for insurers to impose late payment fees.

New York also announced a one-month extension of the special enrollment period for Affordable Care Act plans through May 15. If someone lost employer coverage, they have within 60 days of losing coverage to apply.

The state’s Department of Financial Services will consider “any liquidity or solvency concerns of the health pans in giving effect to this directive.”

Major insurers have started to waive cost-sharing for COVID-19-related costs and tests.