Bracing For Impact On Two Fronts Affecting Low Income New Yorkers Most Heavily: Healthcare & Food / SNAP: UPDATED w SCOTUS Ruling

Bracing For Impact On Two Fronts Affecting Low Income New Yorkers Most Heavily: Healthcare & Food

 

At the same time that Americans are bracing for the effects of a loss of food stamp income, or SNAP (Supplemental Nutritional Assistance Program), they’re also preparing to be hit with soaring insurance costs.  For many, this will bring about tough choices, as they’ll have to choose between healthcare and putting food on the table. It should be noted that, as outlined below, there IS an emergency fund that COULD be used for SNAP benefits – but the administration so far won’t use them.

From the AP: “The Trump administration is rejecting the idea of using roughly $5 billion in contingency funds to keep food aid flowing into November amid the government shutdown, according to a Department of Agriculture memo that surfaced Friday. States temporarily covering the cost of benefits next month [like New York] will not be reimbursed, the memo says.”

UPDATE: Attorney General James Releases Statement on Supreme Court SNAP Decision

NEW YORK – New York Attorney General Letitia James [at 9pm on Friday November 7th] released the following statement after the U.S. Supreme Court granted the Trump administration’s request to temporarily stay a lower court order requiring the distribution of full Supplemental Nutrition Assistance Program (SNAP) benefits:

“This decision is a tragedy for the millions of Americans who rely on SNAP to feed their families. It is disgraceful that the Trump administration chose to fight this in court instead of fulfilling its responsibility to the American people.

“Every day the federal government delays is another day that children, seniors, and families face real pain and suffering. I will not stop fighting until every family has the resources they need to put food on the table.” 

This weekend, Staten Islander is spotlighting a charity (CFLC) that’s been doing good in the community, whose stated goal is to ensure that their local community doesn’t feel this impact of lack of food and essentials.  In addition, while you’re starting to think about holiday gifts for kids, the Salvation Army has ramped up their food pantry and soup kitchen offerings, and at the same time requesting help from concerned residents who want to make sure that all kids can experience the joy of opening gifts they asked for this holiday. 

 

Oh, and for those who think the end of SNAP won’t affect the economy, it should be noted that 42 million Americans, including 39% children, will not be able to buy food.  “SNAP benefits account for more than two-thirds of food spending among households with income below the poverty line,” according to the USDA. A significant percentage of all food bought in the USA is purchased using SNAP.  Now the money won’t be there, so those items won’t be purchased.  It’s also just before the holidays, as previously mentioned, so when these families spend their gift money on groceries, their kids don’t get presents either – more money diverted and spent in other ways.

In addition, the ACA marketplace, which enrolls about 10% of Americans who have insurance, has an open enrollment period going on right now.  If people don’t sign up by December 15th, they aren’t shut out of the system, but they will spend January with no health insurance.  Should they get sick, they’d have to pay out of pocket.  The number of people who enroll between January and February is much smaller (about 1/2 million compared to almost 24 million before January 8th- this is a rough estimate based on earlier versus final numbers and is not exact). 

According to the Economic Research Institute at the USDA: “SNAP is one of the Nation’s primary countercyclical Government assistance programs. Because SNAP is an entitlement program and benefits are means-tested, the program provides assistance to more low-income households during an economic downturn or recession and to fewer households during an economic expansion, serving as an automatic stabilizer to the economy. Historically, SNAP spending and the participation rate tend to track the unemployment rate and the poverty rate…

“In FY 2023, adults aged 18–59 made up the largest share of SNAP participants (42 percent), followed by children (about 39 percent) and adults aged 60 and older (19 percent)…

“The rise in SNAP participation and benefit sizes during an economic downturn result in greater SNAP spending which, in turn, stimulates the economy.

“During a recession, some households that lose part or all of their income become eligible and participate in SNAP. For households that were already participating before a recession, SNAP benefits increase if their income falls. SNAP benefits support households’ food spending and nonfood spending (by freeing up money that households would otherwise need to spend on food). This, in turn, augments the income and spending of producers, processors, distributors, retailers, and their employees. Thus, SNAP benefits start a multiplier process that supports macroeconomic spending and production. SNAP participation and benefits can automatically expand when the economy weakens and contract when it strengthens.”

According to the Economic Policy Innovation Center, which claims that the expiring credits aren’t responsible for the increases but it’s due to higher usage (Ozempic and Wegovy demand, for example), inflation, and staff shortages: “Most insurers expect that Biden’s COVID Credits will expire as the law requires in December 2025. This leads to many of them forecasting a decrease in enrollment in their ACA plans, especially in “healthier” enrollees whose plans were substantially or fully subsidized by these credits. This projection assumes healthy individuals will not deem the ACA plans worth the cost of coverage without the subsidy.

 If healthier people, who are less likely to file claims for medical procedures or prescriptions in any given year, leave the risk pool, the remaining participants, who are typically older and less healthy, would have to pay higher premiums to offset the increase in average morbidity.”

Here is some background on the SNAP benefit issue: 

According to a new report by CNN, the Trump administration will not tap into its $6 billion contingency fund to cover food stamp benefits next month, despite its legal authority to do so. 

President Trump refuses to help American families who depend on SNAP. Instead, the president has decided to send $20 billion in taxpayer dollars to bail out Argentina.  Last week, the Trump administration’s Department of Agriculture (USDA) instructed states to pause SNAP processing for November. Instead of standing up for their constituents, congressional Republicans have chosen to fold to the administration, allowing them to use hungry families as leverage instead of doing everything in their power to keep them fed. 

SNAP provides critical food assistance to families, seniors, and children; losing it would have devastating ripple effects across local economies and food security networks nationwide. The program injects billions of dollars annually into the U.S. economy, supporting grocery stores, farmers, and food distributors in every community.  NBC News reports that the impending loss of these benefits will put even more stress on social service organizations across the nation, which are already working overtime to provide aid to struggling families. More and more Americans are relying on food banks and assistance programs as the government shutdown persists into its fourth week. 

In response to the federal government turning its back on New Yorkers, Governor Hochul announced yesterday that the state is issuing $30 million in emergency food assistance to families across New York State, in addition to the $11 million she announced on Friday. Still, these funds can only temporarily offset the loss of federal support. 

Last week, after the USDA instructed states to pause SNAP processing for November, Senator Gillibrand joined Senate Majority Leader Chuck Schumer and 40+ Senate colleagues in urging USDA Secretary Brooke Rollins to immediately release funding to ensure uninterrupted SNAP benefits. 

 

And below is some info about the expiring ACA credits: 

A new Washington Post report reveals that American families are bracing for the steepest increase in health insurance premiums in years after Senate Republicans refused to extend enhanced Affordable Care Act (ACA) tax credits. 

According to the report, average premiums for benchmark “silver” plans on the ACA marketplace are set to soar by roughly 30% nationwide. This increase marks the largest annual jump in health insurance premiums recent years. 

 

Insurers cite two key drivers behind the spike: 

·         The expiration of enhanced ACA tax credits, which will cause healthier Americans to forgo coverage they can no longer afford; 

·         And rising costs for drug, hospital, and medical care. 

 

Without the tax credits, millions of middle-class Americans—particularly those earning above 400% of the federal poverty level (around $72,000 for an individual)—will face dramatically higher out-of-pocket costs for essential health coverage. 

This past week, Sen. Gillibrand sounded the alarm about rising health insurance premiums for older adults

About this issue, Rep. Ritchie Torres of the Bronx said the below (and his office wants to hear from you if you’re affected):

As a result of Donald Trump and Republicans in Congress, hardworking Americans, including families right here in the Bronx, are beginning to receive notices that their health care premiums are about to skyrocket. At the same time, Republicans have shut down the government and refuse to negotiate for a bipartisan solution to reopen it and prevent these massive premium hikes for the American people.

With their reckless behavior, Republicans have created a health care crisis, slashing Medicaid, targeting Medicare, and forcing hospitals and community health centers to the brink. They are choosing to make public servants work without pay and let families’ premiums double rather than return to Washington to govern responsibly.

Democrats are united in saying: Enough is enough.

We’re ready to meet anyone, anywhere, at any time to reopen the government, pay our workers, and lower health care costs for hardworking people from coast to coast, and right here in the Bronx.

Share Your Story

Have you received notice that your health insurance premiums are rising because of the shutdown or expiring tax credits?

Your story matters, and it helps us fight for change in Washington.

Share your experience:  https://ritchietorres.house.gov/contact

Your input will help us spotlight how the Republican shutdown and their “Big, Ugly Bill” are hurting Bronx families, and make the case for extending health care tax credits to keep costs low.

The Bottom Line

Republicans have shut down the government instead of doing their jobs.

Democrats are fighting to reopen it, and to lower costs, protect health care, and stand with the working people who make this country run.

The Bronx deserves better than dysfunction. It deserves action, compassion, and accountability.

Banner Image: Salvation Army Pittsburgh Temple Corps food pantry.  Image Credit – Salvation Army