New York's entire Democratic congressional delegation is backing new legislation aimed at undoing federal cuts that stripped hundreds of thousands of New Yorkers of their health coverage earlier this year. The bill arrives months after income eligibility rules for the state's Essential Plan tightened, pushing an estimated 450,000 people off the program that once insured about 1.7 million residents statewide.
The Restoring Essential Plan Coverage Act, introduced Thursday by Rep. Alexandria Ocasio-Cortez and Sen. Chuck Schumer and cosponsored by the full New York Democratic delegation, would reverse the federal funding restrictions behind those cuts, according to Gothamist. The outlet reports the bill would give New York the option to expand Essential Plan eligibility again and let other states broaden similar coverage programs, while also undoing restrictions on using federal funds to cover certain legally present immigrants. It would apply to health plans beginning in January 2027.
Ocasio-Cortez framed the push as urgent, saying “immediate steps are needed to repeal the harmful impacts of H.R. 1 on New York,” per the same report. The restrictions trace back to a 2025 domestic policy and spending package that Gothamist reports Trump and congressional Republicans engineered, resulting in roughly $7.5 billion in cuts to the Essential Plan program nationally.
How the Cuts Unfolded in New York
The Essential Plan has long served New Yorkers who earn too much for Medicaid but still struggle to afford private insurance, offering premium-free coverage with minimal copays. Before the cuts, an individual could earn up to about $40,000 a year and still qualify. Gov. Kathy Hochul's administration lowered that threshold to $32,000 in July, a change the state projected would knock around 450,000 people off the rolls.
That estimate roughly lines up with a report from New York Focus, which put the number of expected disenrollments between 450,000 and 470,000. The Fiscal Policy Institute has tracked the fallout closely, finding that total Essential Plan enrollment fell from 1.68 million in March to 1.34 million by July 5, and the institute projects the cuts will ultimately swell the state's uninsured population by nearly 350,000.
Where Displaced Enrollees Landed
State data cited by Gothamist shows the picture is mixed. As of Aug. 30, about 197,000 of the New Yorkers expected to be affected had either stayed on the Essential Plan or shifted onto Medicaid, which carries no monthly premiums. Another 59,000 enrolled in private marketplace plans through New York's Affordable Care Act exchange, though those plans can come with steep premiums even after subsidies.
That still left 177,841 former Essential Plan enrollees who had not enrolled in another plan through the state marketplace as of Aug. 30 — though the Gothamist report notes that figure doesn't necessarily mean all of them ended up uninsured, since some may have found coverage through a job, a spouse, or another source. The Daily Gazette likewise cautions that it's unclear how many of those residents secured insurance through other means. State Department of Health figures reported by the Gazette show 256,159 affected consumers — just under 60% of those impacted — managed to enroll in a new plan or retain coverage, with the average qualified health plan running $220 a month after tax credits.
A Costly Jump for Some Families
For those who landed on marketplace plans instead of Medicaid or a continuing Essential Plan, the new bills can be steep. The Fiscal Policy Institute notes Essential Plan coverage came free with very low or zero deductibles, while Bronze marketplace plans can carry annual deductibles of $4,000 to $6,000. One former enrollee, Lee Bonvissuto, told Politico that a silver-level marketplace plan now costs about $800 a month in premiums.
The enrollment drop-off has shown up locally too. The Daily Gazette's review of state figures found Essential Plan-related enrollment in Albany County fell 15% between March 1 and Aug. 30, from 18,543 to 15,682 residents. Schenectady County saw a steeper 16% decline over the same stretch, dropping from 12,083 to 10,150 enrollees.
Hospitals Back the Restoration Effort
New York hospital and nonprofit clinic groups have thrown their support behind the restoration bill, according to Gothamist's reporting. Those groups have raised concerns that a growing uninsured population could squeeze provider revenue and ultimately shrink the healthcare services available to communities that rely on them.
Essential Plan open enrollment for 2027 coverage is set to begin Nov. 1, timing that gives the restoration push added urgency even as its fate in a Republican-controlled Congress remains uncertain. Gothamist frames the bill as an effort by New York Democrats to put GOP lawmakers on the spot ahead of the midterm elections, forcing a public vote on whether to undo cuts that have already reshaped coverage for hundreds of thousands of residents across the state.
