NYC Comptroller’s Office Estimates $710 Million in Annual Economic Benefits from Expanding Health Coverage For Immigrant New Yorkers

Analysis Finds “Coverage For All” Proposal Generates Broad Benefits Including Increase in Life Expectancy, Labor Productivity, Personal Finances and Access to Health Care Systems

 NYC Comptroller Brad Lander released an analysis of the economic benefits of Coverage For All, finding that enacting the proposed state legislation (A880A/S1572A) would provide $710 million in total estimated benefits annually while increasing health care access for undocumented New Yorkers. The legislation creates a state-funded Essential Health Plan open to all New York adults who live up to 200% below the federal poverty level and are currently excluded from public and Marketplace coverage due to their immigration status. The Comptroller’s Office analysis estimates yearly benefits of $649 million from preventing premature deaths, $22 million in increased labor productivity, $20 million in lower out-of-pocket costs, and $19 million in reduced uncompensated care costs, including uncovered emergency room visits.

“Immigrant New Yorkers were essential to New York’s fight against COVID-19, yet disproportionately shouldered the brunt of the health and financial turmoil of the pandemic in part due to poorer health care access,” said Comptroller Lander. “Expanding quality and affordable medical coverage regardless of immigration status will bolster both healthier communities and a healthier economy. Coverage For All will help immigrant communities avoid unnecessary and costly emergency room visits as a source of primary care, while guaranteeing longer lives and economic benefits for both employers and health care providers.”

Nearly 426,000 residents in New York State are currently ineligible for public health care programs due to immigration status, and 250,000 remain uninsured. The Community Service Society (CSS) and Citizens Budget Commission (CBC) have estimated about 154,000 undocumented adults who live below 200% of the federal poverty line are uninsured. Currently, the Child Health Plus Program provides New York children through the age of 18 with health insurance, regardless of immigration status. And while Emergency Medicaid offers coverage for serious medical emergencies, such as serious body dysfunction or organ damage, undocumented adults are right now ineligible for public or Marketplace coverage, impeding access to primary and preventative care.

Coverage For All (A880A/S1572A), sponsored by New York State Assembly Member Richard Gottfried and Senator Gustavo Rivera, would create a state-funded Essential Plan for all adults aged 19 and up who earn below 200% of the federal poverty level, regardless of immigration status. CSS and CBC estimate that 46,000 people would enroll at an annual net cost of $345 million, after subtracting $316 million in Emergency Medicaid spending and $4 million in health care provider taxes.

Expanding health care insurance has a myriad of benefits for individuals, families, employers, and health care providers, from saving lives and improving long-term health to lowering costs and boosting workforce productivity. The Comptroller’s Office estimated yearly economic benefits to include:

• Increase in Life Expectancy: Expanding health care coverage to approximately 46,000 currently excluded New Yorkers could avoid an estimated 55 premature deaths year, leading to an estimated $649 million annually in economic benefits.
• Increase in Labor Productivity: Healthier workers would need nearly 77 percent fewer sick days, saving employers and individuals an estimated $22 million annually in hours worked at the minimum wage rate of $15 per hour.
• Reduction in Out-of-Pocket Costs: Families would save an estimated $20 million annually in out-of-pocket health care costs.
• Reduction in Uncompensated Care Costs: Health care providers would save an estimated $19 million annually, including 7,764 fewer uncompensated Emergency Room visits per year.

The full economic analysis can be viewed here.