New Yorkers Warned of 38 Percent Spike in Health Insurance

Newsweek

a day ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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New York Governor Kathy Hochul has warned her constituents that President Donald Trump's tax and domestic policy bill, which is being debated in Congress, may result in health insurance costs rising by 38 percent for some in the state.
According to the governor, if the "One Big Beautiful Bill" is approved, the 140,000 New Yorkers with low-income who use the state-run marketplace health plan may see their average monthly premium costs rise by $114.
Newsweek has contacted Hochul and the White House for comment via email outside regular working hours.
Why It Matters
Trump's "big, beautiful bill" has been divisive in Congress, with both Democrats and Republicans warning of its potential consequences. The bill, which includes about $4.9 trillion in tax breaks, passed in the House after weeks of negotiations. Some lawmakers have voiced concern about constituents losing critical benefits, while others have called for further budget cuts.
Elon Musk, Trump's former adviser, has also lashed out against the bill since he left the Department of Government Efficiency. The billionaire has criticized not only the fiscal plan but also those who voted in support of it.
With the Trump administration looking to make cuts and changes to federal health care programs, such as Medicare and Medicaid, concern about health insurance has been escalating.
New York Governor Kathy Hochul.
New York Governor Kathy Hochul.
NDZ/STAR MAX/IPx/STRMX via AP
What To Know
Hochul's office reported on Monday that the 38 percent spike in health insurance cost represented an average monthly increase of $114 for individuals and $228 for couples.
In total, 240,000 New Yorkers would be affected, the governor's office reported, while other policies brought in by the Trump administration could increase the number of uninsured New Yorkers to 1.5 million.
The effects of the legislation are expected to vary by region, with Mohawk Valley seeing the highest rise in costs—potentially a $270 jump in average monthly premiums for couples, equivalent to a 49 percent increase.
Other highly affected areas include the Southern Tier, Central New York and Western New York.
Couples in the mid-Hudson region could see an increase in monthly premiums of $206, or 31 percent, while couples in Finger Lakes could see costs rise by $248 a month, equating to 42 percent.
New Yorkers who also have coverage via the state-run individual commercial market but do not qualify for tax credits would also be affected, Hochul's office said.
The governor's report added that insurers have predicted that these constituents would experience a rise of 4.3 percent in their insurance rates next year.
This would mean between 65,000 and 80,000 people in New York, so about a third of those on the state's individual market, would lose their coverage.
The governor's office said the reason the bill could result in health insurance cost increases was because the GOP intended not to renew the American Rescue Plan's enhanced premium tax credits.
The enhanced tax credits, established under the American Rescue Plan in 2011, were extended through to 2025 by the Inflation Reduction Act and are set to expire if not renewed by the Trump administration.
These tax credits helped more than double enrollment in the Affordable Care Act marketplace to about 24.3 million in 2025, according to KFF, which added that the credits boosted health care coverage a fraction more than Medicaid expansion.
The expansion of enrollment was also particularly high in red states, KFF reported, increasing the number of those enrolled by 255 percent in Texas and 147 percent in Florida from 2020 to 2025.
What People Are Saying
New York Governor Kathy Hochul said in a news release: "The GOP's Big Ugly bill would slash health care coverage for millions of New Yorkers and raise monthly costs by hundreds of dollars. If New York's Republican delegation won't stand up for their own constituents, I will."
New York State Health Commissioner Dr. James McDonald said in the news release: "The proposed cuts to federal health care support hurt everyone. These cuts take health insurance away from working New Yorkers. They undermine the progress we've made in providing affordable and accessible health insurance to New Yorkers. When people lose health insurance, they risk going without needed health care or suffering financial hardship."
What Happens Next
Trump's tax bill continues to make its way through the legislative process.