Governor Cuomo Announces Impact of Potential Affordable Care Act Repeal in NY

NY residents would lose $250 million in health care savings tax credits.

Photo by: Governor's Press Office.

Albany, NY - January 4, 2017 - Governor Andrew M. Cuomo today announced the impact of potential repeal of the Patient Protection and Affordable Care Act on health care coverage of New Yorkers and the state budget. If the repeal of the Affordable Care Act were enacted, an estimated 2.7 million New Yorkers would lose coverage and New York State would experience a direct state budget impact of $3.7 billion and a loss of nearly $600 million of federal funding that goes directly to counties, which they use to help lower property taxes.

"The cost of a repeal of the Affordable Care Act, to state and local budgets and to the New Yorkers who depend on its health care coverage, is simply too high to justify," Governor Cuomo said. "Since its implementation, the Affordable Care Act has become a powerful tool to lower the cost of health insurance for local governments and New Yorkers, and it is essential that the federal government does not jeopardize the health and livelihoods of millions of working families."

The NY State of Health exchange has successfully cut the percentage of uninsured New Yorkers in half, from 10 percent to 5 percent. It has also significantly expanded eligibility and access to health coverage, allowing hundreds of thousands of previously uninsured New Yorkers to achieve economic and healthcare security. Based on current enrollment levels, the repeal of the Affordable Care Act would result in over 2.7 million New Yorkers losing health coverage. The estimated number of individuals at risk of losing coverage, based on current enrollment levels, is broken down by counties below:

The estimated direct state budget impact of the repeal is $3.7 billion. New York’s counties have been able to use the additional federal Medicaid funding through the Affordable Care Act, which goes to directly to counties and helps to lower property taxes. A repeal of the Affordable Care Act would result in a total loss of $595 million in funding. A county by county breakdown of the allocated annual funding that each county would lose is available below, based on the most recent year:

George Gresham, President, 1199SEIU United Healthcare Workers East, said, “New York’s healthcare workers see the positive impact of the Affordable Care Act every day. Our patients are able to access preventative care instead of coming to emergency rooms in states of advanced illness. Our employers have reduced losses from uncompensated care. Our friends and relatives are relieved of the fear that getting sick equals financial ruin. Repealing the Affordable Care Act without an adequate replacement would have immediate and devastating consequences for millions of our fellow New Yorkers and for state and local budgets. We applaud Governor Cuomo’s leadership in educating New Yorkers about costs and are proud to stand with him to advocate for the health all New Yorkers,”

Greater New York Hospital Association President Kenneth E. Raske said, “These deeply troubling numbers are only the tip of the iceberg if the Affordable Care Act is repealed. It will also severely harm the hospital community. 27 hospitals across New York State are on a ‘watch list’ for financial stress and many more both public and private face similar fiscal challenges. Repealing the Affordable Care Act without an immediate and adequate replacement plan will make things dramatically worse for safety net hospitals and the vulnerable communities they serve. I applaud Governor Cuomo for his leadership and look forward to working with the bipartisan members of the New York Congressional delegation to ensure that the health care of all New Yorkers is protected.”

Bea Grause, President of the Healthcare Association of New York, said, “In addition to providing care to those in need, hospitals are major employers in communities all across the state. Repeal of the ACA could have tremendous consequences for the delivery of healthcare and also in terms of jobs and economic activity. It’s imperative that Congress be mindful of this reality. I’m pleased to join the Governor in this important effort to protect New Yorkers.”