Exclusive | NYC dropped record $10.3B on healthcare last year, mostly for its own workers, earning state a dubious distinction

The Big Apple dropped a record $10.3 billion on healthcare last year — mostly for its own government workers — helping New York earn the dubious distinction of spending more on the services than any state except Alaska.The finding was quietly reported in a city Health Department review on medical costs and spending.The analysis stated that the cost of care is a major stressor on the city budget, which provides medical coverage for 1.2 million municipal workers and retirees.“High and rising health care spending continues to outpace inflation and wages, generating growing opportunity costs for individuals, businesses, and governments.New York State has the second-highest per capita health care spending, after Alaska,” the report says.The study suggested the city is limited in what it can do to rein in costs and bolster accountability because private insurers and not-for-profit hospitals are largely regulated by the state and federal governments.

The sweeping analysis said prices, rather than patient use, is the primary driver of rising health care spending.Outpatient spending at hospital-run facilities was cited as a major cost driver in the study.“The City spent $10.03B [billion] on employee/retiree premiums in FY25, up 15% since FY23,” the report said.It found:“As one of the nation’s largest public purchasers of health care, the City has a substantial interest in understanding the factors driving health care costs and affordability challenges,” the Health Department said in its report.Morning Report delivers the latest news, videos, photos and more.

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Never miss a story.Healthcare affordability remains one of the most pressing challenges straining New Yorkers’ pocketbooks as they face rising premiums, deductibles, copayments, and higher prescription drug costs, the report said.Amid the higher...