MEDICAID: A LIFELINE FOR AMERICANS
Medicaid is a public program that provides health insurance for low-income people, including pregnant women, children, seniors, and people with disabilities under certain income levels. It provides health coverage to 70 million people, or one in five Americans.
- Medicaid costs are shared by states and the federal government.
- Medicaid covers 41% of all births, nationwide.
- Medicaid covers two-thirds of nursing home residents.
In 2014, the Affordable Care Act expanded Medicaid to cover low-income people, earning up to 138% of the federal poverty level. The expansion was mandatory, but the Supreme Court ruled to make it optional for states. The federal government covered most of the cost of this expansion through federal matching funds (FMAP).
States that adopted Medicaid expansion report lower uninsured rates and better health outcomes. As of 2025, Medicaid and Child Health Plus (CHIP) cover about 7.5 million people in New York, or one in three New Yorkers.
THREATS TO MEDICAID
STATE
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2003
2003:$1.9 billion proposed cuts
HEP fought to restore $1.9 billion in proposed Medicaid cuts to hospitals and nursing homes in Governor Pataki’s state budget.
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2007
2007:More cuts in state budget
HEP helped avert healthcare cuts in Governor Spitzer’s budget, and preserved a dramatic expansion of CHIP for all children, including the undocumented.
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2019
2019:$1 billion cut restored
HEP fought to restore $1 billion in healthcare cuts in the state budget.
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2023
2024: NY Alliance/Medicaid Equity Now formed
Medicaid does not fully reimburse hospitals for the cost of care, creating a healthcare crisis in Black, Latino and low-income communities. HEP formed the New York Alliance for Healthcare Justice to fight for Medicaid equity and to end healthcare disparities.
FEDERAL
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2017
The Graham-Cassidy-Heller plan of 2017
Graham-Cassidy-Heller plan proposed block grants to cut Medicaid funding, leaving millions without coverage and services. New York would have been hard hit, receiving nearly $1,000 less per person.
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2024
Cuts to fund tax breaks
HEP urged Congress to reject $1 trillion in Medicaid and Affordable Care Act cuts in the budget reconciliation bill. In 2025, President Trump signed the One Big Bill into law, enacting the largest healthcare cut in history and slashing Medicaid coverage for millions of Americans.
