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Home » News » New York State » Medicaid cuts: Will the ‘Essential Plan’ survive in New York?

Medicaid cuts: Will the ‘Essential Plan’ survive in New York?

At a press conference in Western New York on Monday Governor Hochul joined elected officials and health leaders to denounce the sweeping federal legislation in the One Big Beautiful Bill, which will fundamentally change healthcare in the U.S. According to the Governor’s Office, the new law will eliminate insurance for millions, spike out-of-pocket costs, and cost local hospitals billions of dollars.

31,000 in NY-24 to lose coverage

New York’s 24th Congressional District is expected to be among the hardest hit:

  • Total newly uninsured in NY-24: 31,388
  • Medicaid enrollees losing coverage: 27,253
  • Essential Plan enrollees losing coverage: 4,135
  • Average couple’s insurance premium increase: $259/month (33% rise)
  • Total fiscal impact on NY-24: $241.2 million
    • Hospital losses from uncompensated care: $31.2 million

$13 billion annual impact statewide

The new Medicaid and Essential Plan cuts represent a massive $13 billion blow to New York’s health care infrastructure:

  • Estimated total uninsured statewide: 1.5 million people
  • Essential Plan losses: $7.5 billion in federal funding
  • Medicaid losses/new costs to NY State: $5.5 billion
  • Annual increase in uncompensated care: Over $3 billion
  • Total hospital and health system cuts: $8 billion annually

Governor Hochul emphasized the urgency:

“These devastating cuts will leave families unable to afford doctors’ appointments or life-saving treatments — it’s wrong, it’s unacceptable, and I’ll fight like hell to protect New Yorkers in harm’s way.”

Deep strain on hospitals and services

State officials and health experts warned the consequences go beyond those losing coverage. Hospitals may be forced to eliminate critical services such as maternity care, psychiatric treatment, and even face closures due to the combined pressure of lost revenue and increased demand from newly uninsured patients.

Dr. James McDonald, New York State Health Commissioner, stated:

“These reckless, unprecedented cuts threaten the health and wellbeing of tens of thousands of New Yorkers. When families lose access to care and hospitals lose critical funding, everyone suffers.”

Leaders condemn the ‘Big Ugly Bill’

Democratic officials across the state blasted the bill, calling it a direct attack on working families:

  • Rep. Tim Kennedy: Called the law “an assault” on working-class communities.
  • Assembly Majority Leader Crystal Peoples-Stokes: Warned that costs will rise even for the insured.
  • Assemblymember Jon D. Rivera: Described the cuts as “cruel” and “devastating.”
  • Labor and community leaders: Called the law a betrayal of the working class.

What’s next?

New York State is expected to pursue legal and legislative action to mitigate the effects of the cuts. Governor Hochul vowed to use “the full weight of New York State” to protect residents.

Key takeaways:

  • 1.5 million New Yorkers face loss of insurance coverage.
  • $13 billion in health care funding at risk.
  • Local hospitals could see over $30 million in losses from uncompensated care in NY-24 alone.
  • Premiums could rise 30% or more for insured couples on the Marketplace.
  • State leaders are rallying to oppose the federal cuts and preserve access to care.


Categories: New York StateNews