Governor Kathy Hochul says three new policies that will put money back in the pockets of millions of New Yorkers. This week marks the first implementation of an increased minimum wage, the nation’s first paid prenatal leave law, and a ban on insulin co-pays for state-regulated insurance plans.
“The new year has arrived — and so have three major new policies that will make a difference in the lives of working people,” Governor Hochul said. “The cost of living is just too damn high, so I’m doing everything in my power to make New York more affordable for families.”
Governor Kathy Hochul secured in the FY2024 Budget, a transformative plan to help low-wage New Yorkers keep up with the rising cost of living by increasing New York’s minimum wage for three years and then tying future increases to inflation. On Jan. 1, 2024 the State minimum wage increased to $16 in New York City and the counties of Nassau, Suffolk and Westchester, and to $15 in all other parts of the State and is scheduled to increase by $0.50 per year on Jan. 1, 2025 and Jan. 1, 2026.
Beginning in 2027, the minimum wage will increase annually by the three-year moving average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region. An “off-ramp” is available in the event of certain economic or budget conditions. More information can be found on the State Department of Labor website.
Effective Jan. 1, 2025, any privately employed pregnant New Yorker is now able to receive an additional 20 hours of paid leave for prenatal care. The New York State Department of Labor estimates that about 130,000 pregnant women per year will be eligible for this benefit, with about 65,800 of those being hourly workers.
Pregnancy-related health care includes:
- Physical examinations
- Medical procedures
- Monitoring
- Testing
- Discussions with a health care provider needed to ensure a healthy pregnancy
- Fertility treatment
- End of pregnancy care
The paid prenatal leave benefits are in addition to New York State Paid Family Leave, existing employer-provided leave and existing sick leave benefits, ensuring workers can receive the health care needed to address all pregnancy related care to create healthy outcomes without jeopardizing their employment or finances. The law applies to all private employers in New York State, with no minimum employee threshold, and is applicable to both full-time and part-time employees.
Eliminating Insulin Co-Pays on State-Regulated Insurance Plans
This initiative is the most expansive prohibition against insulin cost-sharing in the nation, providing financial relief to New Yorkers and improving adherence to these life-saving medications. With 1.8 million New Yorkers diagnosed with diabetes, the proposal is estimated to save eligible New Yorkers up to $1,200 per year, and an estimated $14 million in 2025 alone.
According to the American Diabetes Association, people with diabetes have medical expenses that are 2.3 times higher than people who do not have diabetes and the impact is even larger for communities of color, which face disproportionately high diagnosis rates.
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