New York to require insurers to defer premium payments until June 1

New York Gov. Andrew Cuomo said April 2 that consumers and businesses won't have to pay their health insurance premiums if they're experiencing financial hardship because of COVID-19.

The New York State Department of Financial Services will require health plans to defer premium payments through June 1 for members who can't pay them. The requirement affects individual and small group plans.

During this time, health plans will still be required to pay claims for consumers and businesses. They can't report late payments to credit rating agencies and must work with people who need new coverage if appropriate. Late payment fees are also prohibited under current law.

The department said it will consider any liquidity or solvency concerns for health plans affected by the decision.

More articles on payers:
15 insurers waiving costs for COVID-19 treatment
UnitedHealth to launch COVID-19 test
Humana, Cigna waive costs for COVID-19 treatment

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