September 3, 2025

Adrienne A. Harris
Superintendent
New York State Department of Financial Services
One State Street
New York, NY 10004

Re: United Healthcare’s proposed 18% premium increase on supplemental plans for Medicare

Dear Superintendent Harris:

As State Senators representing districts throughout New York State, we are writing to express our strong opposition to United Healthcare’s proposed 18% increase to supplemental insurance premiums for Medicare beneficiaries in New York State. We believe such steep increases are unreasonable and excessive under New York Insurance Law § 3231, and we urge the Superintendent to disapprove or substantially reduce the requested rate hikes. We also note that other insurers across New York have filed for similarly significant hikes, which would compound the burden on seniors and further undermine the affordability of essential coverage.

The Department must ensure that rates are not “unreasonable, excessive, inadequate, or unfairly discriminatory,” and that they are grounded in sound actuarial assumptions and methods. The requested 18% increase far exceeds inflationary trends and is more than five times the current inflation rate of approximately 3.2% in New York, and more than six times the national average of around 2.7%. This stark disparity highlights how fundamentally disproportionate the increase would be for beneficiaries whose budgets have not kept pace with rising costs.

While insurers may argue that rising medical costs justify such increases, DFS must ensure that proposed rates remain reasonable and legally justifiable. Many older New Yorkers already wrestle with the rising cost of housing, utilities, food, and prescription medications. Excessive increases in supplemental coverage could force them into untenable choices—potentially sacrificing care and risking worse health outcomes. We are not aware of any clear actuarial justification that would warrant such a disproportionate increase in cost for policyholders.

Our constituents who rely on supplemental Medicare coverage are often seniors on fixed incomes. They carefully budget their Social Security checks and modest retirement savings to cover daily expenses. An abrupt 18% increase by United Healthcare in its supplemental insurance premiums would impose a severe financial hardship that could force many to choose between paying for needed medical coverage and covering other essentials such as food, rent, and heating costs.

We also point out that supplemental coverage is not a luxury. It is essential to protect older adults from the 20% coinsurance under Medicare Part B, which has no out-of-pocket maximum. Without reasonably priced supplemental coverage, seniors will be exposed to unpredictable and potentially catastrophic medical bills, undermining the very purpose of our state’s commitment to affordable and accessible health care.

In light of the statutory criteria, this proposed increase appears neither justified nor equitable. We respectfully - but strongly - urge DFS to exercise its authority to deny or substantially reduce this filing, ensuring that premiums remain fair, actuarially sound, and affordable for those who need this protection most.

Thank you for your careful consideration of this matter, and for your continued work protecting New York’s seniors and consumers.

Sincerely,
Shelley B. Mayer (SD37)
Jamaal T. Bailey (SD36), Jabari Brisport (SD25) , Samra G. Brouk (SD55 ), Cordell Cleare (SD30), Leroy Comrie (SD14), Patricia Fahy (SD46), Nathlia Fernandez (SD34), Kristen Gonzalez (SD59), Andrew Gounardes (SD26), Pete Harckham (SD40), Michelle Hinchey (SD41), Brad Hoykman-Sigal (SD47), Robert Jackson (SD31), Brian Kavanagh (SD27), Liz Krueger (SD28), John C. Liu (SD16), Zellnor Myrie (SD20), Roxanne Persaud (SD19), Jessica Ramos (SD13), Christopher Ryan (SD50), Julia Salazar (SD18), James Sanders, Jr. (SD10), Jessica Scarcella-Spanton (SD23), James Skoufis (SD42), Sam Sutton (SD22), and Lea Webb (SD42).