New York, New York — Nearly 500,000 moderate-income New Yorkers are losing Essential Plan health coverage starting July 1 after federal changes tied to HR 1, the Republican-led law signed in 2025.
The Essential Plan, part of New York’s Affordable Care Act marketplace, had covered residents earning 200% to 250% of the federal poverty level. New York State of Health says an estimated 450,000 people will lose coverage as eligibility changes take effect.
The Guardian reported that community groups in New York City are trying to move residents into new plans before a 60-day deadline. Many affected families are expected to face premiums, deductibles, and out-of-pocket costs they previously avoided under the low-cost Essential Plan.
The coverage loss is part of a broader national rollback. KFF estimates the 2025 reconciliation law could increase the number of uninsured Americans by 10 million in 2034, with New York among the hardest-hit states. The Congressional Budget Office estimated the law will add $3.4 trillion to the deficit through 2034, largely because revenue losses from tax cuts exceed spending reductions.
Health centers say newly uninsured patients may delay care or turn to emergency rooms when treatment becomes unavoidable.
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