July 1 deadline looms: 460,000 Americans at risk of losing health coverage

Many Americans may soon lose their health insurance because of a law that will take effect later this summer. Around 460,000 people could be affected by this change. The change comes after a big policy reversal in health benefits. New York is cutting back a nearly free health insurance program. The change will start from July 1.

The rollback is happening because of cuts in federal funding. The program affected is called the Essential Plan. This plan is funded by the federal government. The Essential Plan has no monthly premium. People only pay small co-pay amounts when they use services. About 1.7 million people in New York are currently enrolled in this plan.

Many more people joined in 2024. This happened after New York increased the income eligibility limit. That change allowed more people with higher income to qualify. Now the state is bringing back the original income limit. Because of this, many people who qualified earlier will no longer qualify. As a result, thousands of people may lose their health insurance coverage.


New York Governor Kathy Hochul confirmed the rollback after approval from the Trump administration on March 20. Hochul said the decision was due to federal funding cuts, and about 1.3 million people will remain covered. Hochul said the healthcare cuts force hundreds of thousands of residents to make tough decisions about coverage. She also said officials are exploring ways to help those losing coverage later this year.

The New York Department of Health will notify affected residents by April 1. The notices will include other options, such as private plans through the Affordable Care Act marketplace. Health Commissioner Dr. James McDonald said the priority is to keep coverage affordable and accessible, according to his statement as noted by The Sun.

Background and bigger picture

New York previously expanded eligibility for the Essential Plan with approval from the Biden administration. The plan covers working residents who earn too much for Medicaid but lack employer insurance. The income limit was increased from 200% to 250% of the federal poverty level in 2024.

That equals roughly $39,000 for one person and $67,000 for a family of three. Around 380,000 more residents gained coverage in 2024 after the expansion, according to the report as stated by The Sun. By March 1, 2026, the number at risk grew to 460,000.

Why the rollback happened

New York reconsidered the expansion because of a law called the One Big Beautiful Bill (OBBB). The law bans federal health funding for some legally present immigrants who are not citizens. State officials said this rule alone could cost the Essential Plan $7.5 billion per year. New York considered moving affected immigrants to state-funded Medicaid costing $2.7 billion. The state ultimately chose to reverse the expansion instead.

Other health coverage changes

Enhanced Affordable Care Act subsidies may also expire December 31, 2025. These subsidies currently lower monthly premiums for many Americans. They were expanded through the American Rescue Plan and Inflation Reduction Act, according to federal policy history as noted by The Sun. If they expire, millions of Americans could see higher premiums in 2026. Democrats are pushing to extend the subsidies, making it part of ongoing government debates.

More coverage losses nationwide

Around five million Americans may also lose Medicaid due to a new work rule passed last month. Experts expect record-high insurance bills in 2026.

A July 1 rollback in New York’s Essential Plan, combined with other federal policy changes, could leave hundsreds of thousands without affordable health coverage, according to officials and reports as cited by The Sun.

FAQs

Q1. Why are 460,000 Americans at risk of losing health coverage?

They may lose coverage because New York is rolling back the Essential Plan after federal funding cuts.

Q2. When could people lose their health insurance?

Coverage for many affected residents is expected to end starting July 1.