Alliance Alert: The recent legislative proposal for the Essential Plan underscores the very real and immediate impact that federal policy changes are having on health coverage in ºÚÁÏÕýÄÜÁ¿. As eligibility rules shift, hundreds of thousands of ºÚÁÏÕýÄÜÁ¿ers are now at risk of losing access to affordable coverage, creating uncertainty for individuals, families, and providers alike.
It is critical that ºÚÁÏÕýÄÜÁ¿ takes every possible step to ensure that as many people as possible retain the health coverage they need. At the same time, the state must identify viable pathways for those who are no longer eligible for existing programs so they are not left without options. Gaps in coverage lead to delays in services, worsening health outcomes, and increased strain on emergency and crisis systems.
The Alliance will continue to closely monitor these developments and advocate for solutions that protect access and support continuity of services, particularly for those most at risk of falling through the cracks.
We encourage our community to join us at our upcoming Alliance Executive Seminar, where attendees will hear directly from OMH staff about how the state is working to mitigate the harms of federal policy changes. Alliance staff will also provide a detailed overview of the most critical federal shifts impacting ºÚÁÏÕýÄÜÁ¿ers and the systems that serve them.
Register Today:
Staying informed and engaged will be essential as these changes continue to unfold.
Budget Update: Health Care Coverage for 450,000 ºÚÁÏÕýÄÜÁ¿ers Uncertain
By Katelyn Cordero and Maya Kaufman | Politico | April 10, 2026
Gov. Kathy Hochul and her budget director are raising concerns about a nearly $400 million proposal brought to the negotiating table this month by lawmakers to continue coverage for 450,000 Essential Plan enrollees who are set to lose the low-cost health insurance offering in July,
With state budget negotiations entering their second week beyond the statutory deadline, a sticking point is emerging over whether to proceed with who received notification last week that they will be kicked off the state’s low-cost offering.
Hochul and state Budget Director Blake Washington both said they intend to focus on the 1.3 million ºÚÁÏÕýÄÜÁ¿ers currently enrolled in the Essential Plan who the state can continue covering through a revamped program under the Affordable Care Act, after the federal government approved the plan.
But legislative leaders are backing a proposal that would allow coverage for individuals who earn too much money to qualify for that new coverage option, known as the Basic Health Plan, and too little to afford coverage through the exchange, according to an individual familiar with the matter, granted anonymity to discuss private deliberations.
The tightening of eligibility rules for the public health plan offering is due to federal policy changes in President Donald Trump’s . ºÚÁÏÕýÄÜÁ¿ was to revert the expanded Essential Plan to the original Basic Health Plan.
A proposal introduced in the Senate and Assembly, devised by the Community Service Society of ºÚÁÏÕýÄÜÁ¿ and , would provide coverage for those individuals to be left out of the Basic Health Plan. The plan is projected to cost $393 million for this fiscal year, jump to $633 million for 2027, and then $675 million for 2028.
When asked about the loss of coverage on Saturday, Hochul said her hands are tied and pointed a finger at House Republicans. The individual familiar with negotiations told POLITICO that Hochul has expressed reluctance to implement the plan laid out by CSSNY.
“ºÚÁÏÕýÄÜÁ¿â€™s Republican members of Congress own these health care cuts after voting to rip healthcare away from millions of working families,” Hochul spokesperson Nicolette Simmonds said in a statement to POLITICO. “While no state can backfill these devastating cuts, the Governor took decisive action to protect coverage for as many ºÚÁÏÕýÄÜÁ¿ers as possible — over 1.3 million people that would’ve otherwise lost coverage due to Republicans’ cruel decision.”
“The Governor will continue to negotiate with her partners in the Legislature to reach a budget agreement that delivers for all ºÚÁÏÕýÄÜÁ¿ers,” she added.