New York's Department of Financial Services has issued an emergency regulation intended to help the state's health insurers deal with a federal requirement that puts some under sharp financial stress.
The federally mandated program for adjusting financial risk under the Affordable Care Act transfers pooled funds to plans showing higher-risk clients.
It has particularly affected newer and smaller insurers that have generated limited patient records.
The department says federal calculations include administrative expenses and profits and may not appropriately consider how New York's rating structure counts children.
Under its new regulation, the department will consider whether the 2017 federal program will adversely affect New York's small group health insurance market and implement a "market stabilization pool" to account for factors in New York.