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The New York State Capitol may soon see activity as lawmakers consider returning for a special session. Assemblyman John McDonald told Spectrum News that the Assembly majority will meet on Friday (July 11) to discuss the implications of a recent tax cut and spending bill signed by President Trump. The bill, known as H.R. 1, is expected to have significant impacts on New York's health care system.
The legislation, passed without Democratic support, aims to cut federal health spending by about $1 trillion over the next decade. This move is expected to reverse many health coverage gains from previous administrations, potentially leaving over 1.5 million New Yorkers without health insurance. The bill mandates work requirements for Medicaid, affecting enrollees in 40 states, including New York, which expanded Medicaid under the Affordable Care Act.
Assemblyman McDonald expressed concern about the devastating impact on New Yorkers, even those not directly using Medicaid. The Congressional Budget Office estimates that nearly 12 million Americans could lose insurance by 2034, affecting hospitals, nursing homes, and community health centers, especially in rural areas.
The bill also caps taxes on Medicaid providers, a move that could financially strain health facilities. Rural hospitals, in particular, may face closures or service reductions. To address this, the legislation includes a $50 billion fund starting in 2026 to support rural facilities.
As New York lawmakers prepare to address these challenges, the special session could be pivotal in determining the state's response to the federal cuts. The outcome may significantly impact health care access and affordability for New Yorkers in the coming years.