New York Faces Major Health Care Funding Cuts Under One Big Beautiful Bill Act

The One Big Beautiful Bill Act, which extends and creates tax cuts, includes about $1 trillion in cuts to Medicaid, CHIP, and ACA insurance exchange plans, significantly impacting New York's health care system. Nearly half of these cuts, amounting to $451 billion, target funding streams that New York and other states rely on to support safety net providers, reconcile Medicaid reimbursements with actual care costs, invest in health care modernization, and expand low-cost insurance access. These reductions threaten the financial stability of providers such as Nassau County Medical Center and others, forcing difficult decisions regarding reimbursement and coverage.

Additionally, the legislation introduces administrative barriers making it more challenging for low-income individuals to obtain and maintain coverage. This complexity disproportionately affects vulnerable populations, including those lacking stable housing, working irregular schedules, or dealing with disabilities and other health issues. Most Medicaid beneficiaries in New York rely on this coverage due to the absence of affordable employer-sponsored insurance options, and the new law does not offer alternatives for these groups.

The bill also imposes new restrictions on insurance coverage for noncitizens, increasing the number of uninsured individuals who will resort to emergency care at higher costs and with more severe health outcomes. Hospitals will continue providing care to these uninsured patients but will face rising costs for uncompensated charity care. Consequently, these financial pressures will shift to private insurance premiums, escalating expenses for businesses and individual policyholders and potentially leading to longer wait times and reduced care access.

The reductions will impact not only Medicaid beneficiaries or immigrant populations but the health care system broadly, including the workforce that constitutes a critical part of Long Island's economy. The article emphasizes that withdrawing resources weakens the overall health care infrastructure. However, since many provisions phase in over several years, there remains an opportunity for Congress to reconsider and possibly reverse the most damaging cuts before implementation, which would benefit all patients and stakeholders in the health care ecosystem.