New York’s leading healthcare association is urging the state’s congressional delegation to reject a sweeping House budget bill that it says would slash nearly $13.5 billion a year from the state’s healthcare system.
In a letter dated May 19, the Healthcare Association of New York State (HANYS) warned that the proposed legislation would cause “catastrophic” damage to healthcare access, infrastructure, and the state’s economy. “The ripple effect on New York’s economy will cost New Yorkers their health security, their jobs and the health of their local economies,” wrote HANYS President Marie B. Grause.
The association represents nonprofit and public hospitals, nursing homes, and other healthcare providers across the state. It said the bill would strip coverage from 1.5 million New Yorkers, generate $1.4 billion in new uncompensated care costs, and slash $1.5 billion annually in anticipated Medicaid rate increases.
According to HANYS, the bill also contains provisions that would reduce federal funding by $7.5 billion each year for the state’s Essential Plan and saddle New York with $2.7 billion in new Medicaid obligations. The state would also face an additional $900 million annual penalty for covering certain populations required by state law.
“The reconciliation package goes well beyond the stated intent of program integrity,” the letter states, citing additional administrative costs of $575 million per year.
HANYS argued that the legislation comes at a time when healthcare providers are already struggling with financial strain, workforce shortages, and mounting reimbursement pressures. The group urged lawmakers to consider the devastating consequences for patients and providers in communities across New York.
“For these reasons, I urge you to reject the House budget reconciliation bill,” Grause wrote.
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