Nearly 450,000 New Yorkers will lose their Essential Plan insurance coverage today, July 1, 2026, due to federal funding cuts enacted by the One Big Beautiful Bill Act signed into law a year ago.
The affected New Yorkers are those earning between 200% and 250% of the federal poverty level—roughly $31,920 to $39,900 annually for an individual, according to NY State of Health. The Essential Plan, established in 2015 under the Affordable Care Act, had provided low-cost health insurance to more than a million New Yorkers by offering zero-premium coverage with minimal out-of-pocket costs.
Governor Hochul’s administration took steps to protect coverage for most enrollees by converting those earning up to 200% of the federal poverty level to a Basic Health Program with the same benefits. However, the state’s budget process, which concluded in late May 2026, did not allocate additional funding to preserve coverage for the 450,000 individuals in the 200–250% income bracket, according to nyhealthaccess.org.
The coverage loss stems from HR 1, known as the One Big Beautiful Bill Act, passed by Congress and signed into law on July 4, 2025. The law withdrew federal funding that had allowed New York to receive tax credits for certain legally present immigrants and reduced the income threshold for Essential Plan eligibility. Bill Hammond, a senior fellow at the Empire Center for Public Policy, explained that the loss of federal support forced the state to narrow the program: “They’re low-income people, and they’ll have to find a lot of money to pay for insurance. It goes on the list of things they have to spend money on, like rent, utilities, and food.”
Alternatives and Broader Coverage Losses
Individuals losing Essential Plan coverage can seek plans through the Affordable Care Act marketplace, but those plans can cost hundreds of dollars a month, according to Time Magazine. Some may qualify for premium tax credits if their income remains below 400% of the federal poverty level, though subsidy amounts have declined as the law allowed federal subsidies to expire for higher-income households in 2026.
The New York coverage losses are part of a much larger national impact. The Congressional Budget Office estimates that Medicaid changes in HR 1 will result in 7.8 million more uninsured people by 2034, while the Urban Institute projects the figure could reach 10.1 million by 2028. The law also imposes new work requirements—80 hours per month—for Medicaid recipients in expansion states beginning January 1, 2027, and requires states to verify eligibility every six months instead of annually.
Community health centers are bracing for significant strain. Amanda Pears Kelly, CEO of Advocates for Community Health, warned that federally qualified health centers expect an influx of uninsured patients with no additional funding to absorb the costs. The National Association of Community Health Centers estimates HR 1 will lead to 1,800 community health center closures nationwide and cost centers around $7 billion annually in uncompensated care.
Sources
- Time Magazine — detailed reporting on the 450,000 New Yorkers losing coverage, the Essential Plan structure, HR 1 provisions, federal subsidy expiration, Congressional Budget Office estimates, and community health center impacts
- NY State of Health (info.nystateofhealth.ny.gov) — official confirmation that 450,000 New Yorkers will lose coverage July 1, 2026, income thresholds (200–250% FPL), and Governor Hochul’s protection measures for those below 200% FPL
- nyhealthaccess.org — confirmation of 450,000 affected individuals, income limit reduction from 250% to 200% FPL, and state budget outcome in May 2026
- Empire Center for Public Policy — context on federal funding withdrawal and state’s response to narrow Essential Plan eligibility
- Congress.gov — HR 1 health coverage provisions and legislative framework
