From HealthAffairs 12/8/17. For the full article, click here.
“The Basic Health Program (BHP) is an alternative that the Affordable Care Act offers states to provide health care coverage to their low-income uninsured population. States that choose to participate in the BHP offer “standard plans” to their residents with incomes between the Medicaid expansion level and 200 percent of the federal poverty level who are not eligible for employer coverage or other government programs. BHP coverage may be more affordable for enrollees than exchange coverage and can smooth transitions between Medicaid coverage and the private market.
To fund BHPs, the ACA requires the federal government to transfer to states funding “equal to 95 percent of the premium tax credits under section 36B of the Internal Revenue Code of 1986, and the cost-sharing reductions under section 1402, that would have been provided for the fiscal year to eligible individuals enrolled in standard health plans in the State if such eligible individuals were allowed to enroll in qualified health plans.” New York and Minnesota are the only states that have to date created BHP programs.”
So if the federal government doesn’t fund the “cost-sharing reduction payments” (based on President Trumps executive order not to make those payments) by the end of the year, NY will lose what is claimed to be $1 billion in funding.