Basic Health Program Hit by Cost Sharing Reduction Decision

Soon after the President decided to stop paying cost-sharing reductions (CSRs), Minnesota and New York received word that their Basic Health Programs would face substantial budget cuts. An Affordable Care Act option, the Basic Health Program (loosely based on Washington State’s former Basic Health Program) is funded by 95% of what the federal government would have otherwise paid on the marketplace in premium subsidies and CSRs. The two states now face a $1 billion cut this year – representing about a quarter of the total annual federal funds expected. A lawsuit was filed against the federal government last week, but the states are working to assure their collective 800,000 Basic Health enrollees that their coverage is safe for now.

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