NY probes data behind insurance hikes

ALBANY, N.Y. — New York authorities are investigating the accuracy of data that health insurance companies and HMOs submit to justify rate increases.

Financial Services Superintendent Benjamin Lawsky says the new investigation will take the time to drill down into the information to make sure it accurately accounts for costs and spending. The probe is in addition to the regular review of rate requests that must be done within 60 days before the department approves or rejects increases.

One of the areas to be examined is whether insurers are accurately allocating administrative costs.

The audits will be paid for with a $4.4 million federal grant.

Lawsky said Feb. 15 that insurers won't be notified their rate request is getting the extra review.