Thousands of Ulster County residents could lose their health insurance as New York State prepares to roll back the Essential Plan, which helps low-income adults who don’t qualify for Medicaid to get low-cost coverage. The plan is being scaled back after a major cut in federal funding.
Starting in 2026, New York plans to reduce eligibility from 250% to 200% of the federal poverty level, which could remove an estimated 450,000 people statewide from the Essential Plan. Thousands of Ulster County residents could be among them.
The Essential Plan has been a safety net for people earning just enough to miss out on Medicaid but not enough to afford private insurance. In Ulster County, nearly one in five residents uses Medicaid, and thousands more rely on non-employer coverage like the Essential Plan. The state’s decision lowers the income limit for eligibility, meaning people working part-time, gig jobs, or in service industries may be forced to shop for higher-cost plans or go without insurance entirely.
Local hospitals and health providers are bracing for the fallout. If more people lose coverage, patients may delay care until they face emergencies, which drives up costs and puts pressure on clinics and emergency rooms. Health care advocates warn that these changes could especially hurt immigrants and working families who were only recently brought into the system when the plan was expanded in recent years. Without other affordable options, some residents may slip through the cracks.
The state says rolling back the plan will save around $3 billion a year, but for communities like Ulster County, the savings could come at a steep human cost. Nearly 7 percent of residents under 65 already lack insurance, and that number could grow.
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