New York's Essential Plan cuts to affect 450,000, hitting DACA recipients hard

An estimated 450,000 New Yorkers are set to lose their health coverage under the Essential Plan starting July 1. This significant reduction in coverage is a direct consequence of federal funding cuts mandated by the "One Big Beautiful Bill Act," also known as H.R.1.

The measure specifically targets individuals and households with annual incomes falling between 200% and 250% of the federal poverty level. The Essential Plan, currently serving 1.7 million low-income New Yorkers who do not qualify for Medicaid, offers comprehensive benefits including no monthly premiums, deductibles, and free preventive care. According to NY State of Health, the state's official health plan marketplace, the federal funding reduction will affect more than a quarter of those actively enrolled this year.

Governor Kathy Hochul had previously worked to preserve assistance for most enrollees by restoring the Basic Health Program's authority. However, the decrease in federal subsidies under the Affordable Care Act (ACA) has made this outcome unavoidable for a substantial group. Those losing eligibility have reportedly received letters with instructions on seeking alternative health insurance options.

The impact is particularly acute for recipients of the Deferred Action for Childhood Arrivals (DACA) program. Individuals within this group earning above 138% of the federal poverty level, equivalent to over $22,024 annually for a single person, will no longer qualify for any programs offered through NY State of Health. Exceptions may apply for those experiencing qualifying life changes, such as marriage, divorce, or the birth of a child, who can report these changes to reassess their eligibility. Pregnant individuals may also retain coverage regardless of income. Those losing Essential Plan coverage will need to enroll in a Qualified Health Plan (QHP), which may come with higher premiums, deductibles, and out-of-pocket expenses.

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La medida responde a recortes federales derivados de la “One Big Beautiful Bill Act”, o H.R.1, y afectará a afiliados con ingresos anuales de 31.920 a 39.900 dólares en hogares unipersonales.