DFS Adopts Final Health Equity Regulation
The New York State Department of Financial Services (DFS) has finally adopted its health equity regulation. The regulation requires health insurers to request voluntarily disclosed information regarding an applicant’s, insured’s, and an insured’s covered dependent’s race, ethnicity, preferred language, sexual orientation, and gender identity or expression. The data collected may not be used in a manner that is unfairly or unlawfully discriminatory and may not be used by an insurer in underwriting or rating decisions. Only aggregated, anonymized data will be used by insurers and the DFS to study potential health equity issues in health insurance and to improve access to health care services. You can read the DFS guidance on the new health equity regulation here: https://www.dfs.ny.gov/industry_guidance/health-equity. You can read the following DFS regulatory materials adopting the new regulation: 1) the actual regulatory language -- DFS Final Adoption of Health Equity Regulation; 2) the DFS assessment of public comments on the regulation -- DFS Assessment of Public Comments on Health Equity Regulation; and 3) the DFS regulatory filings accompanying the Notice of Adoption in the April 2, 2025, New York State Register -- DFS Regulatory Filing on Final Health Equity Regulation.
Superintendent Adrienne A. Harris Strengthens Commitment to Health Equity with New Regulation Requiring Insurers to Collect Voluntarily Disclosed Demographic Data
Superintendent Adrienne A. Harris today announced that the New York State Department of Financial Services (“DFS” or “Department”) has adopted a new regulation to reduce disparities in health care access and use across New York. This adopted rule requires health insurers to request voluntarily disclosed demographic data, such as race, ethnicity, preferred language, sexual orientation, and gender identity, ensuring critical self-reported data is available to better understand insurance benefit use and develop policies that serve the needs of all New Yorkers, especially underserved communities.
"We cannot adequately address health disparities without robust data and information," said Superintendent Harris. "By analyzing trends in health care utilization, the Department can identify populations that may not be fully using their benefits, and direct resources where needed so that New Yorkers receive the quality care they need and deserve."
Under the new rule, insureds will have the option to provide this information through a separate questionnaire, administered apart from the application or renewal process. The Department will use this data to identify and address any systemic disparities in benefit use. The regulation expressly prohibits insurers from using the data for unfair or unlawful discriminatory purposes, including eligibility, rate-setting, and underwriting determinations. Insurers will be required to attest in writing to the Department on a regular basis that they are complying with the data usage restrictions.
The Department is committed to advancing health equity in the state of New York. In 2024, 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. The adopted regulation 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. To support compliance, DFS has developed a standard template that insurers can use to collect demographic information. The template mirrors demographic language used by the New York State of Health and Centers for Medicaid and Medicare Services. DFS developed this regulation through extensive outreach to industry leaders, health plans, state and federal regulators, and the general public. To review the adopted regulation and template, visit the Department’s health equity landing page.
