Basic Health Program delayed until 2015

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February 7, 2013 by Tony Novak

This week the U.S. Department of Health and Human Services announced the postponement of a critical component of health reform law known as the “Basic Health Program”. It is unclear whether the postponement was driven by high cost or technical issues with implementation. It appears that the delay (or possible termination) of this program will expand the need for commercial short term medical insurance and mini-med insurance through the year 2014. Freedom Benefits plans to immediately boost resources to promote awareness and provide individual support enrollment in these types of insurance plans.

Per KHR, “The Basic Health Program (BHP) is an optional coverage program under the Patient Protection and Affordable Care Act (ACA) that allows states to use federal tax subsidy dollars to offer subsidized coverage for individuals with incomes between 139-200% of the federal poverty level (FPL) who would otherwise be eligible to purchase coverage through state Health Insurance Exchanges. States can use the BHP to reduce the cost of health insurance coverage for these low-income consumers, a highly price-sensitive population with high rates of uninsurance. Depending on how it is designed, the BHP also can help consumers to maintain continuity among plans and providers as their income fluctuates above and below Medicaid levels.”

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