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Q&A

Chair Lee on H&H preparation for federal Medicaid cuts

New York City Council · Jun 5, 2026 · starts 4:33:46 · 5 min 33 sec

Lee asks about federal funding risks and Medicaid eligibility changes. Katz uses a frog-in-boiling-water analogy, describing incremental changes designed to avoid a single moment of alarm. He emphasizes H&H will care for everyone regardless of insurance status and explores AI and care model efficiencies.

Linda Lee

And just in terms of the federal funding risks, obviously, you know, that are set to take effect this summer and fall, what steps are you taking to prepare for some of these changes to Medicaid eligibility?

Dr. Mitch Katz

Right, so the analogy I always think of with the government changes, and it's why it's so dangerous, it's the true scientific experiment that if you have boiling water and you drop a frog into it, the frog will jump out.

Dr. Mitch Katz

But if you put the frog in the water and you just slowly heat it, the frog will die.

Dr. Mitch Katz

And I feel this bill was really created with that in mind, that the changes are very incremental so that you never have

Dr. Mitch Katz

have that moment when you say, oh my God, but as they accumulate, right, and now we have the first people, for example, not getting food, right?

Dr. Mitch Katz

But so far everybody is still insured, right?

Dr. Mitch Katz

But then there's going to be the people who are falling off and they've arranged for there to be accommodation for the first shift, so they won't all fall off at once.

Dr. Mitch Katz

I mean, the most important thing that we do is to constantly remind people, we're here whatever insurance or no insurance you have.

Dr. Mitch Katz

Right, that that does not affect your care.

Dr. Mitch Katz

And we are the only provider who can do full range services for people who do not have insurance.

Dr. Mitch Katz

The FQHCs are great, but don't have the specialty services.

Dr. Mitch Katz

Right.

Dr. Mitch Katz

Right.

Dr. Mitch Katz

So, you know, when someone needs the MRI or they need the breast biopsy, they're going to come to us.

Dr. Mitch Katz

So beyond that, we just need to think about how, given that there will be less dollars, because more of the people that we care for will be uninsured.

Linda Lee

Exactly.

Dr. Mitch Katz

So we have to figure out the model of how to do it.

Dr. Mitch Katz

You had already asked, John, we do think that in the coming months there are going to be opportunities for AI to help us to do certain administrative tasks more efficiently.

Dr. Mitch Katz

That may help a bit.

Dr. Mitch Katz

We're constantly looking to see how we can be, you know, what care models are the most efficient, deliver the greatest benefit.

Dr. Mitch Katz

We will work with you and share any information.

Dr. Mitch Katz

We're certainly working hard to re-enroll everybody we can and to help people learn that there are exemptions, including for volunteer work.

Dr. Mitch Katz

We welcome, I know, the public health department has a great initiative for volunteering to help other people to get benefits.

Dr. Mitch Katz

We're also always trying to get people to work in our skilled nursing facilities where the only skill you need is the willingness to sit next to somebody

Dr. Mitch Katz

next to a baseball game and talk to them about it or sit with someone and play cards.

Dr. Mitch Katz

They're always looking for a fourth hand, right?

Dr. Mitch Katz

And that would qualify as, you know, volunteer experience, right?

Dr. Mitch Katz

There's nothing wrong with work.

Dr. Mitch Katz

There's something wrong with taking away people's fundamental health care, right?

Dr. Mitch Katz

And we want to try to figure out as much as possible how we maintain people's benefits.

Linda Lee

No, definitely.

Linda Lee

And I think that was brought up in...

Linda Lee

Quite a few of the hearings we've had so far, especially with HRA as well as DOHMH before this, when it comes to making sure that the health benefits and also just in general, like SNAP, food stamps, the resource navigator,

Linda Lee

remain funded.

Linda Lee

And do you have those staff that are going to be impacted by this within the hospital setting or within some of your other program areas?

Dr. Mitch Katz

So far, no.

Dr. Mitch Katz

I mean, nobody is affected yet.

Dr. Mitch Katz

Right.

Dr. Mitch Katz

Again, that's this very slow moving thing.

Dr. Mitch Katz

Right.

Dr. Mitch Katz

I mean, again, even to the end of this year, we're fiscally okay.

Linda Lee

I know 22 days of cash on hand is very great.

Dr. Mitch Katz

Yeah, it's only as you get into the outer years when you start adding up all the incremental things.

Dr. Mitch Katz

But again, we have reason to hope that there is an election before there are the final cuts and that maybe there is some opportunity to protect the benefits that people need.

Linda Lee

And then in terms of that and the subsidy amount that could potentially increase as the eligibility gets stricter in the long term, do you have any sort of,

Linda Lee

I know you're saying this year it should be okay, but in the out years, have you done calculations of how much extra funding you would need?

Dr. Mitch Katz

Well, in a sense, the shortfall is the loss.

Dr. Mitch Katz

The question is how much can we make up without harming services?

Linda Lee

Right, so whatever that delta is.

Dr. Mitch Katz

Right, and if it all happens, we will need to come up with alternative models, but maybe sometimes bad times cause you to have creative thoughts.

Dr. Mitch Katz

Come up with new ways, right?

Dr. Mitch Katz

city learned a whole new set of things through COVID that we never knew before, right?

Dr. Mitch Katz

We never used before.

Dr. Mitch Katz

You know, I hope it's not going to come to that, but we will certainly look for other opportunities to figure out how to protect services.

Dr. Mitch Katz

That will be our bottom line.

Linda Lee

Yes, definitely.