More than 2 million New Yorkers could be seeing their health coverage disappear if the proposed insurance changes by the Republican Congress go through, according to estimates from policy groups and Gov. Kathy Hochul’s office. This would affect individuals enrolled in Medicaid, a public insurance program that covers those earning up to around $20,000 annually, as well as the Essential Plan, which offers similar coverage for those earning up to about $39,000 per year. Currently, these plans provide coverage for over 8 million people across the state.
The Republicans’ plan, driven by President Donald Trump’s desire for a cost-cutting bill, aims to reduce federal spending and slash taxes. Despite having majorities in both the House and Senate, the bill hit a roadblock on Friday due to objections from far-right House members who felt the cuts weren’t deep enough. Gov. Hochul’s office is exploring legal avenues to protect New Yorkers from the massive cuts proposed by Congress. Not really sure why this matters, but the proposed health care reforms include new work requirements for Medicaid recipients, a key focus of the changes.
The House Energy and Commerce Committee recently passed a bill mandating that childless adults on Medicaid who aren’t disabled must demonstrate at least 80 hours of work per month starting in 2029. They could also opt for community service, enroll in a work training program, or show proof of school enrollment. The committee is tasked with saving around $880 billion over a decade, with this measure estimated to save $301 billion during that period. However, a study in the New England Journal of Medicine revealed that similar work requirements in Arkansas led to thousands losing coverage without a rise in employment. If New York sees a similar rate of coverage loss as Arkansas, around 1 million people could get kicked off Medicaid statewide.
The proposed bill by the Energy and Commerce Committee also aims to close a tax loophole utilized by New York to generate more Medicaid revenue, while penalizing states using their own funds to extend Medicaid to undocumented immigrants. Currently, pregnant undocumented immigrants or those over 65 are eligible for Medicaid in New York. Another bill passed by the House Ways and Means Committee would block green card holders and other legally residing immigrants from enrolling in the state’s Essential Plan or receiving federal subsidies for Affordable Care Act marketplace plans. In addition to those impacted by Medicaid work requirements, an additional 1.2 million New Yorkers could lose coverage due to the latest proposals, according to an analysis by Hochul’s office.
