ALBANY, N.Y. — New York Governor Kathy Hochul has issued a warning about a potential 38% spike in health insurance premiums for thousands of New Yorkers if a tax and domestic policy bill backed by former President Donald Trump becomes law.
According to the governor’s office, the proposal—dubbed the “One Big Beautiful Bill” by supporters—could result in monthly health insurance premiums rising by an average of $114 for approximately 140,000 low-income individuals enrolled through New York’s state-run health marketplace. For couples, the increase could reach $228 per month.
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The bill, which recently passed the House, contains approximately $4.9 trillion in tax breaks, but has drawn bipartisan concern over its potential to gut critical federal programs, including health care subsidies.
Who Will Be Affected
The impact would be widespread across the state:
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240,000 New Yorkers in total are projected to see premium increases.
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1.5 million New Yorkers could potentially lose insurance coverage due to accompanying policy changes.
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The Mohawk Valley could see the steepest rise, with couples facing monthly premium hikes of up to $270—a 49% increase.
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In Central New York, Western New York, and the Southern Tier, similar spikes are projected.
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The Finger Lakes region may see a $248/month increase for couples, a 42% jump.
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Mid-Hudson couples could face a 31% increase, equivalent to $206/month.
New Yorkers who purchase insurance through the individual commercial market but do not qualify for subsidies are also at risk, with insurers forecasting rate hikes of 4.3% in 2025. That could lead to 65,000–80,000 residents losing coverage—nearly a third of the individual market.
What’s Driving the Increase?
The projected rise in costs stems from the proposed expiration of enhanced premium tax credits, which were introduced under the American Rescue Plan in 2021 and extended through 2025 by the Inflation Reduction Act. If Congress and the Trump-aligned GOP fail to renew these credits, millions nationwide may see their health care costs surge.
The Kaiser Family Foundation (KFF) estimates these credits helped boost Affordable Care Act (ACA) enrollment to 24.3 million by 2025, with particularly large increases in Texas (255%) and Florida (147%) between 2020 and 2025.
Governor Hochul’s Response
In a strongly worded statement, Governor Hochul criticized the proposal:
“The GOP’s Big Ugly bill would slash health care coverage for millions of New Yorkers and raise monthly costs by hundreds of dollars,” she said. “If New York’s Republican delegation won’t stand up for their own constituents, I will.”
Expert Reaction
Dr. James McDonald, New York’s State Health Commissioner, echoed Hochul’s concerns:
“The proposed cuts to federal health care support hurt everyone. These cuts take health insurance away from working New Yorkers… When people lose health insurance, they risk going without needed health care or suffering financial hardship.”
What Happens Next
The bill, controversial across both sides of the aisle, remains under debate in Congress. Elon Musk, who formerly advised the Trump administration and now leads several private-sector efficiency initiatives, has also criticized the bill publicly—highlighting growing concern beyond traditional political circles.
Newsweek has reached out to both the White House and Governor Hochul’s office for further comment.
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