Study: New York Would Lose $40 Billion in Federal Medicaid Funding Under the Better Care Reconciliation Act of 2017 - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
July 24, 2017 Newswires
Share
Share
Post
Email

Study: New York Would Lose $40 Billion in Federal Medicaid Funding Under the Better Care Reconciliation Act of 2017

Business Wire

NEW YORK--(BUSINESS WIRE)-- An independent analysis commissioned by the Coalition of New York State Public Health Plans (“PHP Coalition”) projects that if the current health care bill in the U.S. Senate – the Better Care Reconciliation Act (BCRA) – is passed, New York’s Medicaid program will lose $40 billion in federal Medicaid funding. New York will need to increase state contributions substantially to maintain current Medicaid coverage levels, beginning with $1.7 billion over the next three years and totaling $40 billion by 2026. The analysis, conducted by Manatt Health, calculated the impact of BCRA’s expansion and capped federal funding proposals on New York’s Medicaid population and state budget. Although some elements of the health reform legislation may change during Senate debate, current options under consideration all include proposals to cap Medicaid funding and eliminate enhanced funding for Medicaid expansion, core features of the BCRA.

“Congress is considering a dizzying array of repeal proposals, but each and every one would be devastating to New York's healthcare system, not just for Medicaid clients but for all residents whatever their source of insurance, and seriously compromise our ability to care for our communities,” said Pat Wang, President and Chief Executive Officer of HealthFirst and Chair of the PHP Coalition.

Key findings of the analysis include:

  • A loss of $40 billion in federal Medicaid funds, substantially impacting New York’s budget:
    • $24 billion due to loss of enhanced funding for the Medicaid expansion population.
    • $16 billion due to BCRA’s per capita cap on federal Medicaid funding.
  • A necessary increase in State general fund spending of $40 billion to offset the loss of federal funds; if New York is not able to replace the lost federal dollars, as many as 2 million people would lose coverage and the state would need to cut benefits, increase cost-sharing or reduce reimbursement rates for remaining Medicaid beneficiaries.
  • Annual losses of $2.3 billion, due to restrictions on county Medicaid contributions that apply only to New York State.
    • Per the BCRA’s “Collins-Faso” provision, New York must find an alternative funding source for county Medicaid contributions or face additional per capita cap cuts.
  • Loss of federal funds for the Essential Plan, which covers more than 650,000 New Yorkers.

Rev. Patrick J. Frawley, President and Chief Executive Office of Fidelis Care said, “No amount of tinkering with BCRA changes the fact that the proposed Medicaid changes threaten to undo the tremendous gains New York has made in ensuring access to health coverage and care for New York’s children and families.”

The PHP Coalition collaborated with nationally recognized experts from Manatt Health to analyze the impact of the BCRA on New York.

About the PHP Coalition

The Coalition of New York State Public Health Plans (“PHP Coalition”) is a longstanding voice for New York’s non-profit, publicly-focused health plans and the safety net populations they serve. The Coalition currently represents eight plans serving more than 3 million individuals, approximately two-thirds of all adults and children enrolled in New York's public health insurance program enrollees. All Coalition plans are sponsored by or affiliated with public and not-for-profit hospitals, community health centers and physicians. Coalition plans offer decades of experience in delivering high quality services to these populations that often experience significant barriers to health care, and consistently receive high marks in quality of care and member satisfaction. For more information, visit www.phspcoalition.com.

About Manatt Health

Manatt Health, a division of Manatt, Phelps & Phillips, LLP, is an integrated, multidisciplinary legal, regulatory, advocacy and strategic business advisory healthcare practice. Manatt Health’s experience spans the major issues re-inventing healthcare, including payment and delivery system transformation; Medicaid coverage, redesign and innovation; health IT strategy; health reform implementation; healthcare mergers and acquisitions; regulatory compliance; privacy and security; corporate governance and restructuring; pharmaceutical market access, coverage and reimbursement; and game-changing litigation shaping emerging law. With 90 professionals dedicated to healthcare—including attorneys, consultants, analysts and policy advisors—Manatt Health has offices on both coasts and projects in more than 30 states. For more information, visit www.manatt.com/Health.

View source version on businesswire.com: http://www.businesswire.com/news/home/20170724005327/en/

Manatt Health

Patricia Boozang, 212-790-4523

[email protected]

Source: Manatt Health

Older

New DataRobot Release Extends Enterprise Readiness Capabilities and Automates Machine Learning in Insurance Industry Pricing Models

Newer

Metromile Debuts First-of-its-Kind Automated Claims System

Advisor News

  • Why advisors should be talking about life settlements
  • Millennials are ready to bring their advisor to the family table
  • How healthcare inflation can eat up a client’s retirement income
  • Global economy ‘resilient’ in the wake of massive disruption
  • Cryptocurrency legislation takes one step forward with bipartisan support
More Advisor News

Annuity News

  • NAIC regulators continue pushing for annuity illustration updates
  • Wink: Flat first-quarter annuity sales fall just short of $100B
  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Matthew Michelini named Athene president, with an eye on annuity growth
  • Lincoln Financial Announces Executive Leadership Transitions
More Annuity News

Health/Employee Benefits News

  • Surgery transforms epilepsy patient's life
  • Arizona AG accuses health insurance companies of illegal price fixing
  • Bipartisan Bill Takes Another Step Toward Protecting Veterans from Predatory Claims Companies
  • Maintaining Continuous Medicaid Coverage for Eligible Children in New Jersey: Clinical Trial Identifier NCT07594782
  • New Managed Care Study Findings Have Been Reported by Researchers at Ohio State University Wexner Medical Center (National Analysis of Trends and Factors Associated with Surgeon Attrition in the US): Managed Care
More Health/Employee Benefits News

Life Insurance News

  • Pradip Patiath Joins Securian Financial Board of Directors
  • Over $107 million in life insurance benefits located for Tennesseans in 2025
  • Study Data from National Institutes of Health Provide New Insights into Law and the Biosciences (Taking actuarial fairness seriously: what is required for the ethical use of genetics in insurance?): Legal Issues – Law and the Biosciences
  • 26North Re Agrees to Acquire 100% of Independent Insurance Group
  • Lincoln Financial Announces Executive Leadership Transitions
More Life Insurance News

- Presented By -

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Press Releases

  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
  • Sequent Planning Recognized on USA TODAY’s Best Financial Advisory Firms 2026 List
  • Highland Capital Brokerage Acquires Premier Financial, Inc.
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet