Hundreds of thousands of New Yorkers could lose their low-cost Essential Plan health insurance.

In New York and other states, hundreds of thousands of people are at risk of losing their health insurance. Federal funding for the Essential Plan program has been cut, and tax credits for insurance under the Affordable Care Act are expiring, according to ABC7.

This could lead to higher prices for medical services and increased pressure on hospitals.

Health insurance costs rise in New York

New York has already entered the list of states with the highest insurance contributions. They may increase even more in the near future.

The state offers a unique insurance plan that impacts hundreds of thousands of families.

"It gives me a lot of anxiety," Mike Walsh said.

He is a freelancer and holds several jobs.

“My income is unstable: sometimes it’s thick and sometimes it’s thin,” he noted.

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My employer doesn't provide insurance. My income is too high for Medicaid.

So he signed up for an Essential Plan through the state Department of Health.

"The out-of-pocket medical co-payments are very low. This helps keep costs under control. I can keep my appointments and get my medications," Walsh explained.

He is among the 450,000 people who received a letter informing them their coverage will end this summer. This is because at least half of the plan's funding comes from the federal government. These funds were cut in the federal budget, which is what led to the latest government shutdown.

"Without this, I would have a very hard time making ends meet," Walsh admitted.

Hundreds of thousands of families are at risk

Walsh isn't alone. In addition to those who received notices, there are more than 700,000 families in the Tri-State region who purchased insurance through the Affordable Care Act marketplace. Their tax credits are expiring.

According to the Empire Center for Public Policy, the following will be affected:

• 456,040 people in New Jersey;
• 128,627 – in Connecticut;
• 119,203 – in New York.

Consequences for hospitals and patients

Eyewitness News discussed the situation with Dr. Donald Morrish, CEO of Episcopal Health Services, the only hospital on the Rockaway Peninsula.

"When people lose their Essential Plan, they end up in the emergency room instead of seeing their primary care doctor. Emergency rooms are much more expensive. But I completely understand their concerns," Dr. Morrish noted.

He predicts that without insurance loans and coverage, even more people will delay treatment. This will result in significant costs for patients and hospitals.

He said that "a visit to the emergency room is much more expensive than a visit to the primary care physician."

Additionally, this means higher bills for emergency room visits.

"More often than not, the hospital is forced to cover such expenses. It becomes a vicious cycle," he concluded.

The hospital, managed by Dr. Morrish, operates as a non-profit organization and does not make a profit. The costs of labor, medications, and procedures are rising. The entire staff is forced to work longer hours with fewer resources.

"Increasing insurance premiums and other changes affect more than just patients. They also impact the healthcare system and the healthcare workers themselves," he emphasized.

What awaits people who lose their insurance?

Walsh was told the state would contact him within three months with available health care options.

"It's very important for me to take care of my health. If I'm not healthy, I won't be able to work or do anything," he concluded.

A total of 1,6 million people are enrolled in the Essential Plan. The state has requested a plan reorganization. If approved, most participants will be able to switch to the "basic" plan. However, 450,000 people who received the letters will lose their coverage. Their income exceeds the federal poverty level, making them ineligible.