Summary of the Article: New York state’s Response to Federal Healthcare Funding Cuts
This article details New York state’s plan to mitigate the negative impact of federal healthcare funding cuts (stemming from H.R.1) on its residents. Hear’s a breakdown of the key points:
Federal Cuts & Impact: A new federal law (H.R.1) is drastically cutting healthcare funding to New York, leading to an estimated 450,000 middle-class New Yorkers losing zero-premium complete health insurance. around 1.3 million New yorkers are at risk of losing coverage. This will also increase uncompensated care for healthcare providers,potentially leading to facility closures and job losses.
State’s Response: Reverting to the Basic Health Program: Governor Hochul is proposing to revert to the Basic Health Program to preserve coverage for as many New Yorkers as possible – aiming to keep 1.3 million people enrolled.
The 1332 Waiver (Essential Plan): The state previously utilized a Section 1332 waiver (the Essential plan) which provided zero-premium, comprehensive health insurance to those ineligible for Medicaid with incomes up to 250% of the federal poverty level.This program was highly prosperous, saving participants an average of $6,000 per year. However, the federal changes necessitate terminating this waiver.
Transition & Support: The state is committed to a smooth transition and will provide:
90-day notice to those affected.
A special enrollment period for alternative CMS-approved coverage.
Enhanced customer service to assist affected consumers.
Public Comment Period: A public comment period is open from September 10, 2025, to October 10, 2025 to gather feedback on the transition plan. (https://info.nystateofhealth.ny.gov/1332)
* Implementation Timeline: The transition to the Basic Health Program is anticipated to be effective by July 1, 2026, pending CMS approval.
in essence, the article highlights a reactive measure by New York State to protect its citizens from the consequences of federal healthcare policy changes. The state is sacrificing a successful program (the Essential Plan) to try and minimize coverage losses and maintain affordability for as many New Yorkers as possible.
