Superintendent Adrienne A. Harris Proposes Health Equity Regulation Requiring Insurers to Collect Voluntarily Disclosed Demographic Data

Today, the New York State Department of Financial Services (DFS) continued its work to close the health equity gap and reduce health disparities with a new proposed regulation.  The proposed regulation requires health insurers to request race, ethnicity, preferred language, sexual orientation, and gender identity data, ensuring critical self-reported data is available to more clearly understand insurance benefit use and develop policy solutions to better serve the needs of all New Yorkers, including underrepresented communities.  Policyholders will have the option to provide this information through a questionnaire administered separately from the application process, and this demographic data will aid insurers in identifying and remediating disparities in care that underserved populations receive.  Today’s announcement builds on the work that DFS has already done to advance health equity in the state of New York, taking a data-driven approach to increase access and affordability to critical services.  Earlier this year, the Department worked to develop and advance the Governor’s initiative to eliminate cost-sharing for insulin and proposed new regulations to increase access to mental health and substance use disorder services.

“Having robust information that can be used to develop data-driven policy solutions is essential to combatting discrimination and addressing systemic health inequities,” said Superintendent Harris.  “By identifying populations that may not be fully utilizing their health insurance benefits, insurers and the Department can better direct resources where they are most needed and draw critical insights to ensure that all New Yorkers receive the health care they deserve.”

The regulation prohibits insurers from using the data for unfair or unlawful discriminatory purposes, including eligibility, rate setting, and underwriting determinations, and requires insurers to collect the data in a separate and supplemental questionnaire at the time of application for new insureds or at renewal for current insureds.  Any rate filing or rate manual submission by an insurer must include an attestation to the Department that the insurer is complying with the data usage restrictions.  Consistent with best practices in demographic data collection, the proposed regulation promotes the collection of self-reported data while ensuring consumer responses to questions are optional.  The proposed regulation, which applies to insurers licensed to write accident and health insurance in New York, not-for-profit insurance corporations, health maintenance organizations certified under the Public Health Law, and student health plans, is subject to a 10-day pre-proposal comment period beginning today, followed by a 60-day comment period upon publication in the State Register.  DFS looks forward to, and appreciates receiving feedback on, the proposed regulation during the comment period.  To review the proposed regulation, go here: Draft Insurance Regulations on Health Insurers Gathering Demographic Data or visit the DFS website.