Prices for individual health insurance policies in the state of New York should drop by 50 percent because of the Affordable Care Act, or Obamacare, predicted New York Gov. Andrew Cuomo (D) on Wednesday.
A representative for Cuomo's office told The New York Times that people paying $1,000 a month for health insurance coverage will likely pay only $308 a month, which would be even a bigger drop than 50 percent.
Unlike some Republican-controlled states, New York has followed Obamacare's guidelines and created an online insurance exchange where residents can buy their policy.
The 2014 health insurance rates were approved for the exchange by New York’s insurance regulator on Wednesday and will go into effect in October when the individual mandate part of Obamacare begins.
New York State has also expanded its Medicaid program under Obamacare, which pays for the first three years.
Obamacare will likely help 2.6 million people in New York State, who are either uninsured or cannot afford an individual policy under the current "free market system."
However, several Republican governors in states such as Texas, Oklahoma, Florida and Wisconsin have refused to set up the federally mandated health insurance exchanges, which leaves the poor and uninsured without coverage.
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For those states, the Obama administration is setting up the exchanges, notes ObamacareFacts.org. In states where the federal government has to set up the exchange, the residents will have to wait an extra year.