State & Local News
New York State Seeks Federal Waiver for Health Plan Transition
March 21, 2026
Governor Kathy Hochul of New York State has publicly called on the federal government to grant a waiver that would enable a smooth transition back to the Basic Health Plan. This action aims to protect healthcare coverage for approximately 1.3 million New Yorkers and support safety-net hospitals facing financial strain due to federal funding cuts enacted during the previous administration. The waiver is critical to mitigating disruptions in healthcare services and ensuring continuity of care for vulnerable populations.
- Why this matters: Procurement professionals should anticipate potential shifts in healthcare service contracts and funding allocations as New York State adjusts to changes in federal support.
- The waiver could influence procurement strategies related to healthcare program administration, vendor selection, and contract management for state healthcare initiatives.
- Organizations involved in healthcare IT, service delivery, and hospital support may find new opportunities or requirements emerging from this transition.
- Stakeholders should engage with state procurement offices to understand evolving contract requirements and compliance expectations tied to the Basic Health Plan restoration.
I urged the Administration to do the right thing and swiftly grant the necessary waiver to ensure an orderly transition back to the Basic Health Plan that will allow us to protect care for 1.3 million New Yorkers.
— Governor Kathy Hochul
Agencies
State of New York, Trump Administration, Congress