ALBANY, N.Y. (NEWS10)— New York State is preparing to make some changes since the federal government will be cutting $7.5 billion dollars in funding to New York State’s Essential Plan. The plan currently covers $1.7 million New Yorkers and provides a zero-dollar premium.
https://www.news10.com/news/ny-news/ny-ends-essential-plan/
“New York’s Essential plan sits on top of Medicaid,” explains Danielle Holahan, Executive Director of New York State of Health. “It covers low and moderate wage workers. So, the income eligibility, we are talking about somebody earning $39,000 a year. They are hardworking New Yorkers, and they are not allowed coverage through their jobs, so we have been serving that population in New York under the Essential Plan.”
The federal funding cut will take effect in January, resulting in income eligibility being lowered. Some will be able to keep their current coverage.
“This allows us to preserve coverage for 1.3 million New Yorkers in the essential plan with no changes,” said Holahan.
About 450,000 New Yorkers will have to transition away.
“We will transition them back to other coverage options. Many will move to our qualified health plan market. We hope some will get job-based coverage options, but we do know that some will become uninsured.”
Holahan shared how many people the state anticipates will become uninsured.
“We estimate that the increase in the uninsured is 250,000 people.”
The soonest the transition could take place is next summer.
“Nothing will change for anybody in the Essential plan in January. We hope and we have been asking Congress to extend some of the effective dates of these changes to allow us time to continue the essential plan as it is today, but absent changes, we will be transitioning people starting in July 2026 into other coverage options.”
A 30-day public comment period is being held until October 10, so New Yorkers can weigh in on returning back to the basic health program.
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