Health Insurance for 2027: What New York Founders and Small Employers Need to Know Before Nov. 1

NEW YORK — For many New York founders, freelancers and small employers, health insurance is the biggest bill they can’t control. The 2027 shopping season starts this week. Open enrollment on NY State of Health, the state’s insurance marketplace, runs from Nov. 1 through Jan. 31. At the same time, many small companies are working through their own plan renewals.

Prices are going up, though less than insurers wanted. Here’s what to know.

The Numbers

In September, the New York State Department of Financial Services (DFS), which regulates insurers, approved 2027 premium rates:

• Individual market: an average increase of 6.0%, cut from the 20.6% insurers requested.
• Small-group market, meaning plans for employers with up to 100 employees: an average increase of 8.0%, cut from the 23.7% insurers requested.

DFS said the reductions save individuals and small businesses about $1.6 billion, and that about 860,000 New Yorkers are enrolled in these two markets. More than 630,000 of them are in small-group plans.

The averages hide wide differences between insurers. According to DFS’s rate summary, approved small-group increases range from a 0.7% decrease at Emblem (HIP) to a 14.4% increase at Anthem HealthChoice Assurance. Oxford Health is at 6.3% and Excellus at 13.5%. In the individual market, Oscar was approved for 3.9%, MetroPlus and Emblem (HIP) for 0% and UnitedHealthcare of New York for 8.1%. Your own renewal may also differ from your insurer’s average depending on the plan and region.

If You’re Self-Employed or a Solo Founder

People without employer coverage shop on the state marketplace. The key dates, according to NY State of Health’s open enrollment guidance, are:

• Enroll by Dec. 15 for coverage starting Jan. 1, 2027.
• Enroll Dec. 16 to Jan. 15 for coverage starting Feb. 1.
• Enroll Jan. 16 to Jan. 31 for coverage starting March 1.

Financial help is thinner than it was. Enhanced federal subsidies expired at the end of last year, Gothamist reports, and the share of marketplace enrollees in private plans who got financial assistance fell to 43% in 2026. Even people who kept subsidies saw premiums rise by $104 a month on average, according to state data cited by Gothamist.

The Essential Plan, New York’s low-cost public option, also tightened in July. Gothamist reports the income limit for an individual dropped to $32,000 from $40,000 because of federal cuts. For founders whose income swings from year to year, that threshold matters. A lean year might have qualified you before, and now it might not.

What to do:

1. Don’t auto-renew blindly. Compare plans, since your insurer’s increase may be well above or below the 6% average.
2. Use the state’s cost estimator on NY State of Health to see what assistance you qualify for. Your estimated 2027 income drives the answer.
3. Estimate income carefully. If you take a salary from your own company or run it as a sole proprietor, your projected income determines your premium assistance. A big error can mean repaying credits at tax time.
4. Check your doctors and prescriptions against each plan’s network and drug list before you choose.

If You Employ People

Small employers renew on their own schedules, often with a broker. The 8% approved average for small groups is a reasonable baseline for budgeting, but your actual renewal is what counts.

Costs may keep climbing beyond 2027. Gothamist reports that analysts expect healthcare spending in employer plans to rise sharply next year, partly because of costly GLP-1 weight-loss drugs. DFS’s rate review covers individual and small-group plans, so if your company grows past 100 employees or self-funds its coverage, the state’s rate decisions won’t cap your increase.

What to do:

1. Get your renewal early and ask your broker for at least two alternatives, such as a different network, a higher-deductible plan or a different insurer.
2. Run the numbers on contribution strategy. Changing how much of the premium you cover, or offering a lower-cost plan option alongside your current one, can soften an increase.
3. Ask about tax credits. DFS notes that some small businesses may qualify for the federal Small Business Health Care Tax Credit. Eligibility depends on company size, average wages and how the coverage is purchased, so check with your accountant.
4. Tell your team early. Employees with their own deadlines, such as a spouse’s plan, will want to know your plan and costs before they decide.

The Bottom Line

New York’s regulators cut insurers’ requests by about two-thirds, but premiums are still rising faster than many small companies’ revenue. For the self-employed, the most important date is Dec. 15. For employers, it’s whenever your renewal lands, so start the conversation now rather than in the last week.

This article is for general information and is not insurance, tax or legal advice. Talk to a licensed broker, a NY State of Health navigator or your accountant about your situation.