New York receives partial approval for Essential Plan changes
The
The approval is the first of two CMS must sign off on before the state can begin notifying consumers about changes to the plan, which are set to take effect
"If approved, the state is prepared to send consumer notices 90 days before the effective date of a change in eligibility," a spokesperson for the state's
First established in 2015, the Essential Plan was created through a provision of the federal Affordable Care Act that allows states to create what's known as a basic health plan, or a low- or no-cost health insurance option for individuals between the ages of 19 and 64 that do not receive benefits through employment and earn between 133% and 200% of the federal poverty level, just above the Medicaid threshold.
Those income limits were expanded in 2024 to include those earning up to 250% of the federal poverty level following approval of a special waiver, which also suspended the state's original basic health plan. Officials praised the expansion at the time as an example of how the state was bolstering health care access while addressing affordability concerns.
But the state has been seeking to terminate the waiver and reinstate the plan's original income limits following the passage of the One Big Beautiful Bill Act last year, which slashed
The cuts pertain to a clause in the legislation that prohibits federal dollars from being used to provide health insurance for lawfully present immigrants, which
Around 700,000 lawfully present immigrants — including green card holders and those seeking asylum — are currently enrolled in the Essential Plan, which is funded through federal subsidies that would have otherwise been paid to insurance companies.
In a bid to preserve insurance for as many as possible, the state last fall submitted a request to terminate the special waiver and reinstate the Essential Plans' original income limits.
The state has said the move will preserve health insurance for 1.3 million, but would result in 450,000 losing coverage, including thousands throughout the greater
A total of 3,906 individuals from
Another 9,049 were enrolled in the plan at the expanded income level in
It's unclear what those individuals who are no longer income-eligible for the Essential Plan will do for insurance moving forward.
A spokesperson for the state's
Changes to the Essential Plan are just one in a series of changes the state is facing due to changes approved in the One Big Beautiful Bill Act, which also slashed nearly
But critics argue the changes will increase the uninsured rate across the country and increase the cost of uncompensated care for hospitals, many of which are struggling to rebound financially after the pandemic.
At the same time,
Enrollment fell by nearly 1 million during the federal open enrollment period in January compared to the same period a year earlier, according to preliminary data, which shows that the number of New Yorkers purchasing health benefits through the exchange dropped to 206,037, a drop of 3%, or nearly 7,000 compared to the same period in 2025.
The state, however, has warned that those numbers could increase in the weeks ahead as people automatically re-enrolled in their plans disenroll due to the spike in costs.



New York receives partial approvel for Essential Plan changes
Openly Announces Independent Board of Directors Appointments
Advisor News
- IRS CEO FRANK J. BISIGNANO VISITS OHIO TO TOUT WORKING FAMILIES TAX CUTS PROVISIONS ON NO TAX ON CAR LOAN INTEREST, NO TAX ON OVERTIME, ENHANCED DEDUCTION FOR SENIOR CITIZENS
- The hidden flaw in insurance AI adoption for advisors and carriers
- Rising healthcare costs impact 401(k) accounts
- What advisors think about pooled employer plans, alternative investments
- AI, stablecoins and private market expansion may reshape financial services by 2030
More Advisor NewsAnnuity News
- MetLife Inc. (NYSE: MET) Climbs to New 52-Week High
- The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
- AuguStar Retirement launches StarStream Variable Annuity
- Prismic Life Announces Completion of Oversubscribed Capital Raise
- Guaranteed income streams help preserve assets later in retirement
More Annuity NewsHealth/Employee Benefits News
- Reed: Can these assets be saved?
- PacificSource to end Montana operations
- PacificSource to end Montana insurance operations
- Reduced health insurance payments for hospital births had a bigger impact on sterilization rates than correcting an injustice
- Ashley Mann:
More Health/Employee Benefits NewsLife Insurance News
- Investigators say C.R. man's life insurance claims for 3 children were fraudulent
- Shocking death of Kyle Busch renews debate over IUL plan
- WoodmenLife launches final expense life insurance offering
- The Standard and Pacific Guardian Life Announce Entry into Agreement to Transition Individual Annuities Business
- Symetra Wins 2026 Shorty Award for ‘Plan Well, Play Well’ Social Media Campaign with Sue Bird
More Life Insurance News