The House of Representatives recently passed the “One Big Beautiful Bill Act,” and this week, all eyes are on whether the federal Senate will successfully pass this bill. New York Governor Cuomo and House Democratic leader Hakeem Jeffries gathered at a rally in Brooklyn on June 1st, expressing concerns that several provisions in the bill could have significant impacts on New York State’s healthcare system. According to the analysis by the New York State Department of Health, if implemented, the bill could result in New York losing approximately $13.5 billion in healthcare funding annually, potentially leaving 1.5 million New Yorkers without health insurance.
The bill cuts federal funding for the “Essential Plan” and Medicaid. The “Essential Plan” alone is projected to lose over $7.5 billion annually, accounting for more than half of the total funding for the program. The plan primarily provides affordable health insurance for low to moderate-income individuals, and the funding cuts could jeopardize its future operations.
Additionally, the bill requires states to strengthen their work eligibility verification and identity authentication for Medicaid beneficiaries, which would significantly increase administrative burden and costs. The New York State government estimates that this could result in a roughly $2.5 billion reduction in federal Medicaid revenue, while increasing administrative expenses by about $500 million, causing nearly a $6 billion impact on the state’s Medicaid program overall.
The reduction in healthcare funding could also lead to the closure of hospitals and long-term care facilities within the state, increasing uncompensated medical expenses. Preliminary estimates suggest that New York State hospitals could suffer losses exceeding $3 billion due to reduced reimbursements and a rise in demand for free medical services, further impacting local healthcare services and employment.
Governor Cuomo stated that if the “One Big Beautiful Bill Act” is enacted, it will weaken the reliance and security of millions of New York State residents on basic life necessities, and the state government will consider legal measures to defend the rights of the people.