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H+H leaders tell City Council House-passed Medicaid changes could cost 'hundreds of millions' and force service cuts
Summary
New York City Health + Hospitals (H+H) told the Council finance and hospitals committees that a House-passed bill could remove hundreds of millions in federal Medicaid funding, threatening services and prompting contingency planning that would likely prioritize emergency and primary care.
New York City Health and Hospitals President and CEO Dr. Mitchell Katz told the City Council's Committee on Finance and the Committee on Hospitals on May 1, 2025, that a bill passed by the U.S. House of Representatives could cut “hundreds of millions of dollars” from Medicaid funding to the system and would force H+H to constrain services if the cuts hold.
Katz framed the testimony as a warning. He said the executive financial plan for fiscal 2026 is based on current federal funding levels, and that sudden reductions — including provisions discussed in the House bill such as work requirements, shortened enrollment periods and cuts to the federal share of Medicaid — would reduce revenue that H+H depends on. “Overall, that bill could result in hundreds of millions of dollars,” Katz said. He later added an illustrative range, noting staff-level estimates in the hundreds of millions: “300, 4 hundred, 5 hundred million dollars.”
The warning matters because the city subsidy for H+H is relatively small compared…
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