Proposed federal cuts would devastate Medicaid, New York’s insurance market, and community health centers, putting New Yorkers at risk.
Press Release
(Peekskill, NY) – Community Health Care Association of NYS and member Sun River Health today stood with elected officials and the New York State Department of Health to talk about the devastating effects the federal reconciliation package will have on health care in New York State.
Community Health Centers (CHCs) are the local family doctor in hundreds of communities across New York that would not otherwise have access to care. They provide high quality primary and preventive care to more than 2.4 million patients each year in New York alone. CHCs serve one in every eight New Yorkers, providing care including medical, dental, vision, and behavioral health services. They also have providers dedicated to caring for children and expecting parents.
Medicaid is the financial backbone of CHCs and their communities, covering 62% of all CHC patients and accounting for nearly 50% of all revenue. The federal reconciliation package would impose new requirements on Medicaid and the Essential Plan that would likely result in 1.5 million New Yorkers losing insurance coverage. That loss of insurance will harm patients, who will struggle to find care, and health centers, which will lose critical revenue. The fact is, Medicaid cuts will harm us all, since providers like health centers will be forced to shut their doors or scale back services.
Sun River Health is a not-for-profit network of 48 Federally Qualified Health Centers (FQHCs) serving over 250,000 patients annually across the Hudson Valley, New York City, and Long Island. As passed by the House, changes to insurance coverage may result in 20,000 Sun River Health patients losing coverage, with over 65,000 potential primary care appointments missed.
As a result, Sun River Health could see an annual revenue loss of $21 Million a year, jeopardizing its ability to continue their 50-year-old mission of providing comprehensive primary care for New Yorkers.
“The GOP’s ‘Big, Ugly Betrayal’ will devastate Hudson Valley healthcare. If Republicans pass this bill, it will hurt millions of New Yorkers on Medicaid, rip away billions in funding from our local hospitals, and threaten unprecedented layoffs of our healthcare heroes – all to fund Trump’s tax cuts for billionaires. We’ve already seen the impact of these cruel cuts in the Hudson Valley with Garnet Health announcing layoffs and cutting services just down the road, and the Medicaid cuts in this new version cut deeper than we’ve ever seen before,” said Senator Schumer. “If NY House Republicans vote for this bill after saying they would not cut benefits, they are betraying New York. With the bill headed back to the House for a final vote, our NY House Republicans have one final chance to do what’s right for their constituents and show us what side they’re on, not with their words but with their vote.”
"These impending Medicaid cuts would put an end to health insurance for 1.5 million New Yorkers—children, seniors, disabled residents in nursing homes—and also cripple our healthcare system,” said New York State Senator Harckham. “Congress must stand firm against the devastating Medicaid cuts in the reconciliation package and defend this vital lifeline. This is not a fiscal decision - it’s a moral one, with real costs in human lives.”
"1.5 million New Yorkers stand to lose Medicaid coverage with the passage of this big, brutal bill,” said Senator Skoufis. “That will mean the loss of hundreds of thousands of jobs, and make healthcare less accessible to many of our neighbors. Congress needs to demonstrate political courage and vote down this harmful, life-or-death bill."
"The ugly legislation that the House passed last month and is now under consideration by the Senate is not just a massive transfer of wealth from the poor to the ultra-rich; it is also a massive attack on public health,” said Assemblymember Dana Levenberg. “This bill would cut coverage for millions and undermine our healthcare system while simultaneously gutting environmental protection, virtually ensuring higher rates of asthma, cancer, and other pollution-related illnesses. It would also cause New York State to lose billions of dollars in federal funding, not to mention the significant financial burden to our hospitals and health centers, like Sun River Health. This legislation is unconscionable and cannot be allowed to pass. I urge the Senate to reject it."
"As we mark Medicaid's 60th anniversary, we should be celebrating this transformative program that provides essential healthcare coverage to nearly 7 million New Yorkers, said Amir Bassiri, Director, Medicaid, NYS Department of Health. “Instead, we’re facing the biggest cut in the program’s history that would strip coverage from up to 1.5 million working New Yorkers, resulting in at least $3 billion annually in uncompensated costs for our safety net hospitals and health centers, that will reduce access to care throughout the state and especially in our rural communities where Medicaid is the primary form of coverage. Medicaid covers one in three New Yorkers and has been a cornerstone of healthcare access for six decades. These cuts to
Medicaid will be felt throughout our healthcare sector and lead to significant disruptions in care and worse health outcomes.”
"Fourteen years ago, the Affordable Care Act represented another historic leap forward in healthcare access, and NY State of Health has been at the forefront of that progress. Through our online marketplace we’ve offered streamlined, one-stop shopping for New Yorkers to enroll in public and commercial health coverage, expanded access to affordable coverage options, enabling the state to maintain an uninsured rate below 5%—achievements we should be building on, not tearing down,” said Danielle Holahan, Executive Director, NY State of Health.
What is happening now is nothing short of a backdoor repeal of the Affordable Care Act which would devastate the very programs that have made New York a national leader in healthcare coverage. After more than a decade of progress in expanding affordable healthcare access, we cannot allow these harmful proposals to gut-punch our healthcare system and abandon the New Yorkers who need coverage most.
“CHCANYS did the math: the federal budget proposal would cost New York’s community health centers $300 million a year, forcing CHCs across the state to cut hours or services or both, jeopardizing the care of 2.4 million people – that’s in one in every eight New Yorkers. The numbers don’t lie: if you limit access to Medicaid, you hurt Community Health Centers and the people they serve,” said Rose Duhan, CHCANYS President and CEO. “We are lucky to live in a state like New York with leaders who understand how crucial access to quality, affordable health care is for everyone – and that Medicaid is a key component to providing that care.”
“These proposed Medicaid cuts aren’t just numbers on a page—they are a direct threat to working Americans who are doing everything right. Our patients are parents, caregivers, essential workers—people holding our communities together.” Anne Kauffman Nolon, MPH, CEO of Sun River Health said, “Stripping away their healthcare puts lives at risk and destabilizes the very system designed to care for all, regardless of income or circumstance. It is ridiculous to put more barriers and red tape in the way of people already doing their best for their families, their communities, and themselves.”
“Medicaid isn’t a luxury—it’s a lifeline for millions of Americans. Cutting it through this reconciliation bill would be a devastating blow to families across the country, from rural towns to urban centers,” said Doug Wirth, President and CEO of Amida Care. “I’ve seen firsthand how Medicaid gives people a second chance—veterans rebuilding after hardship, older adults living their final years with dignity, and people living with HIV accessing lifesaving care. Stripping away this support isn’t just cruel—it’s un-American. Lawmakers should be working to strengthen Medicaid, not dismantle it.”
The proposed Medicaid cuts would strike at the very heart of what health centers like ours do: providing care to the people who need it most,” said Dave Jolly, President and CEO of Cornerstone Family Healthcare. “For many of our patients, Medicaid isn’t just insurance; it’s their only pathway to a doctor, to medication, to stability. These cuts would force impossible choices—reducing services, delaying care, and jeopardizing the health of entire communities. The ripple effect will strain clinics, patients, and public health systems. We urge policymakers to remember that behind every dollar are real people. Cutting Medicaid is not just a budget decision; it’s a life-altering one.
Images and video to accompany this release are available here.
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About CHCANYS. The Community Health Care Association of New York State (CHCANYS) is the voice of New York’s 80 Community Health Centers. CHCs provide care for 1-in-8 New Yorkers at almost 900 locations across the state. CHCANYS provides training and technical assistance to New York’s CHCs in areas including clinical quality improvement, emergency management, data and technology, workforce development, and compliance and operations. CHCANYS also supports CHCs through policy and advocacy work, strengthening and focusing health center voices at the local, state, and federal levels. For more information, visit www.chcanys.org.