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Q&A

CM Restler on H&H financial modeling of health insurance losses

New York City Council · Jun 5, 2026 · starts 5:48:29 · 4 min 7 sec

Restler asks about the financial impact of 783,000 New Yorkers losing health insurance. Katz says DSH dollars cover about 50% of uncompensated care, with the average commercial rate generating $2B as the first line of defense. Olberg confirms they've factored EP5 losses and 10-13% Medicaid disruption into their model.

Linda Lee

Okay, Councilmember Ressler.

Lincoln Restler

Thank you so much to the chairs, and congratulations to Chair Lee for making it to your last hearing of an exceedingly long week.

Lincoln Restler

And President Katz, sorry?

Lincoln Restler

Last one for the week, not in general.

Lincoln Restler

Next week will be even more fun.

Lincoln Restler

And President Katz, always good to see you.

Lincoln Restler

Thank you for your exceptional public service.

Lincoln Restler

I think you're now the one person who's been appointed by three mayors in a row, is that right?

Lincoln Restler

That is correct.

Lincoln Restler

That is a hat you wear unto yourself.

Lincoln Restler

So congratulations on that well-deserved reappointment.

Lincoln Restler

I have a variety of questions for you, but I'll do Patsy first for a moment.

Lincoln Restler

2029 is the date that Commissioner Richards gave for when DOC anticipates Woodhull and NCB opening their facilities.

Lincoln Restler

Is that consistent with your timeline as well?

UNKNOWN

It currently still is 2029, but we are all looking at ways that

UNKNOWN

We could push that up.

Lincoln Restler

And we now fully have teams at DOC and DDC, and our partners are pushing ahead as quickly as possible.

UNKNOWN

Everyone is on the same page and pulling the same.

Lincoln Restler

The wind's at our back, finally.

UNKNOWN

Yes.

Lincoln Restler

Good.

Lincoln Restler

And if there are obstacles or barriers, you will be sure to let us know.

UNKNOWN

Yes.

Lincoln Restler

Thank you.

Lincoln Restler

Okay.

Lincoln Restler

Thank you.

Lincoln Restler

Dr.

Lincoln Restler

Katz.

Lincoln Restler

So the health department testified earlier that their modeling has us losing, has about 783,000 New Yorkers losing health insurance as a result of H.R.

Lincoln Restler

1.

Lincoln Restler

It's mind-boggling to think about one of 11 New Yorkers losing their health care, but that's what we're imminently facing.

Lincoln Restler

And we know that those folks end up on your doorstep.

Lincoln Restler

Do you have a financial model of kind of uncompensated care that we'll now need to provide to these three-quarters of a million New Yorkers who've just lost their health insurance?

Dr. Mitch Katz

Well, the only real financial model we have is that we can access disproportionate share hospital dollars, which would provide about 50% of the cost of the uncompensated care.

Dr. Mitch Katz

So, I mean, that will be, you know, a major source.

Dr. Mitch Katz

50% is better than zero.

Lincoln Restler

And the modeling I've seen is that we're anticipating a $2 billion increase in hospital uncompensated care.

Lincoln Restler

So you're saying that that would be a, we'd get a billion in federal funding through DISH and be able to cover half.

Lincoln Restler

But looking at an additional billion.

Lincoln Restler

And expense is rough estimates at this point.

Dr. Mitch Katz

Right.

Dr. Mitch Katz

Big picture.

Dr. Mitch Katz

You got it right.

Lincoln Restler

Okay.

Lincoln Restler

Thank you.

Lincoln Restler

And forgive my ignorance, but when do you think that funding will need to be in H&H's budget?

Dr. Mitch Katz

Well, again, you know, I do wonder how the mid-year elections will affect this, since that's when you'd start to get some of the biggest cuts.

Dr. Mitch Katz

And I still remain hopeful that the worst-case scenario will not happen.

Dr. Mitch Katz

And a lot depends also on how successful the city is in keeping people on insurance, right?

Dr. Mitch Katz

There's certain people who you can't keep on insurance, right?

Dr. Mitch Katz

Like the people in the essential care.

Lincoln Restler

Between 200 and 250%.

Lincoln Restler

They're just going to lose.

Lincoln Restler

They're done.

Dr. Mitch Katz

They're done.

Lincoln Restler

But how we recertify.

Dr. Mitch Katz

But the other people, potentially, if you consider that almost everybody could, you know, either be working or be taking care of children or be in school or volunteer.

Dr. Mitch Katz

Or be disabled, if you could imagine getting everybody through those hoops, you could have relatively few people falling off.

Lincoln Restler

But the recertification process every six months is intended to create a bureaucratic nightmare that people will not be able to comply with.

Lincoln Restler

Absolutely.

Lincoln Restler

And to that, I would love, do you mind if I keep going with a few more questions?

Lincoln Restler

Fast?

Lincoln Restler

Are you guys rushing?

Lincoln Restler

Quickly.

Lincoln Restler

All right, fast.

Lincoln Restler

I have a few more questions.

Lincoln Restler

So just on that and then a couple more things.