Hundreds of thousands of New York state residents will lose healthcare coverage under the state’s Essential Plan on July 1. This comes as a result of federal cuts that leave the state unable to continue offering its Essential Plan to those earning between 200% and 250% of the Federal Poverty Level, or about $31,920 to $39,000 annually.
New York State of Health, the state’s health plan marketplace, said that the 450,000 affected Essential Plan recipients received a letter on April 1 informing them of the change.
State Senator Gustavo Rivera, a Democrat representing the 33rd District in New York City, said the state had the chance to prevent this outcome, but didn't.
“We as a state had the ability to do something about this,” Rivera said, “There was a bill that I introduced months ago that would have allowed for the state to change state law to cover some of these folks.”
Rivera said that more than $2 billion were set aside in the state budget to retain the expanded Essential Plan coverage, but that the money did not end up passing in the budget.
Advocates are blaming the governor. Emily Eisner, the executive director of the Fiscal Policy Institute, says the governor prioritized moneyed interests – hospitals and health care providers – over vulnerable state residents.
“The state budget this year failed to address the largest decrease in enrollment in state history,” said Eisner, “New York will likely see the rate of uninsurance return to over 10% where it was before the passage of the Affordable Care Act.”
The Essential Plan will still be able to offer healthcare coverage to those earning less than 200% the Federal Poverty Level, according to New York State of Health. More than 1.3 million Essential Plan recipients will be unaffected by the cuts.
Rivera said that affected individuals should call the Community Services Society at (888) 614-5400 to receive help in finding affordable healthcare plans or managing the plans they are already a part of.
Kelly Foster works at an independent living center in Upstate New York. She will be losing her health insurance coverage on the first. The 48-year-old says the Essential Plan Coverage allowed her to get the treatment she needed for menopause as well as see specialists regularly to address ‘significant health issues’.
“I live paycheck to paycheck, like most or many New Yorkers. So, paying a $55 copay at a specialist is manageable. The unaffordable high deductible marketplace plans are not,” Foster said.
New York State of Health says that most affected Essential Plan recipients can enroll in a Qualified Health Plan with financial assistance. To avoid a gap in insurance coverage, state residents are advised to register before Aug. 30.
Foster says she is disappointed in her state and hopes that the governor can find a way to bring coverage for her and the hundreds of thousands of New York residents affected.
“It will require concerted effort and political will, but it is still possible to stem some of these losses with well-constructed state policy that expand the Essential Plan with state funding,” said Eisner.