Hundreds of Thousands of New Yorkers Face Loss of Health Insurance

State lawmakers and governor scramble to mitigate fallout from federal cuts to Essential Plan

Apr. 2, 2026 at 6:04pm

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Roughly 450,000 New Yorkers currently insured through the heavily subsidized Essential Plan will lose that coverage starting on July 1 due to federal spending plan changes approved last year. Both state lawmakers and Gov. Kathy Hochul are taking steps to try to protect those set to lose insurance, even as some officials suggest the impacted population may be smaller than predicted.

Why it matters

The loss of health coverage for hundreds of thousands of New Yorkers could have significant impacts on access to care, financial security, and public health in the state. State leaders are racing to find solutions to avoid leaving so many residents uninsured.

The details

Thanks to federal spending plan changes, around 450,000 New Yorkers insured through the Essential Plan will lose that coverage on July 1. Until recently, 1.7 million people could have lost insurance, but the state received federal approval to keep 1.3 million on the plan. However, that came at the cost of the 450,000 who benefited from a previous state expansion of the plan. State Sen. Gustavo Rivera and Assembly Member Amy Paulin have introduced legislation to authorize the state to cover those making 200-250% of the federal poverty line, at an estimated cost of $400 million to $2.3 billion.

  • On March 20, the federal Centers for Medicare & Medicaid Services approved a request from New York to keep 1.3 million residents on the Essential Plan.
  • On July 1, around 450,000 New Yorkers will lose their health insurance coverage through the Essential Plan.

The players

Kathy Hochul

The governor of New York who is taking steps to try to protect residents set to lose health insurance coverage.

Gustavo Rivera

The chair of the New York State Senate Health Committee who introduced legislation to authorize the state to cover those making 200-250% of the federal poverty line.

Amy Paulin

The chair of the New York State Assembly Health Committee who plans to introduce the measure to protect residents losing Essential Plan coverage.

Carl Heastie

The New York State Assembly Speaker who suggested the number of people losing all health coverage may be lower than the commonly cited 450,000.

Blake Washington

The New York State Budget Director who warned about the high costs of insuring all 450,000 people who could lose Essential Plan coverage.

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What they’re saying

“We don't know exact, exact numbers on the whole thing, but we know enough to know that it's bad.”

— Gustavo Rivera, Chair, New York State Senate Health Committee

“The money is there, it's not going to be that much at all. We've got the 400 million, and we should do it.”

— Gustavo Rivera, Chair, New York State Senate Health Committee

“I believe that all parties know about the bill. I've had conversations with the governor's staff ... I believe everybody wants to do something. It's a matter of what we do.”

— Amy Paulin, Chair, New York State Assembly Health Committee

“There are some people who actually benefited from the plans that the state put forward because it was better than the health plan that may have been offered under their employers. So I think after discussions today, the real number that may really be without health benefits might be about a third of that.”

— Carl Heastie, New York State Assembly Speaker

“How do you continue a program at state cost only that was once a federally funded program? And those costs onto the state are very, very exorbitant.”

— Blake Washington, New York State Budget Director

What’s next

The New York State Legislature is working to pass legislation that would authorize the state to cover those making 200-250% of the federal poverty line who are set to lose Essential Plan coverage on July 1. The bill is currently in discussions as part of the ongoing state budget negotiations.

The takeaway

The potential loss of health insurance for hundreds of thousands of New Yorkers has state leaders scrambling to find solutions, highlighting the significant impacts that federal policy changes can have on access to care and public health at the state level. The outcome of these efforts will be crucial for ensuring vulnerable residents maintain coverage.