Basic Health Plan Settlement for Two States

The Affordable Care Act included a Basic Health option that allows states to cover individuals earning below 200 percent of federal poverty through a state-run program. New York and Minnesota sued after the federal government changed the amounts they would receive to operate their Basic Health programs following the termination of cost-sharing reductions. They reached a settlement agreement in which New York will receive $151.9 million and Minnesota will receive $17.3 million. The states and the Department of Health & Human Services will work together on a revised funding formula for the program.