NYC’s Health Bill Hits $10. 3B, Stressing Budgets

New York City spent a record $10.3 billion on health care last year, mostly covering its own employees and retirees. That puts the city second only to Alaska in per‑capita spending.

The Health Department’s quiet review showed that the biggest cost drivers are outpatient services. Spending on outpatient care jumped 13% for the GHI plan and 17% for the HIP HMO from 2024 to 2025. Emergency‑room visits made up the largest slice of those outpatient bills.

Even people buying individual plans through the state marketplace saw their monthly bills climb to about $909, a rise of nearly 20% over two years. That adds pressure on household budgets, especially for low‑income families, communities of color, and those with chronic illnesses.

The report points out that staffing shortages, shaky hospital finances and ongoing nurse strikes are adding to the strain. While officials blame aging populations or pandemic effects, research shows that rising prices, not more use, are the real cause. City leaders say they need to tackle these cost pressures to protect families.