Under the Affordable Care Act (ACA), states have the option of implementing a Basic Health Program (BHP)—a state-run coverage program for low-income people who aren’t eligible for Medicaid and lack access to an employer-sponsored plan. Under the law, states can opt to devise a BHP and receive 95 percent of the federal subsidy that would have otherwise been offered through the health insurance exchange.
This report prepared for the Robert Wood Johnson Foundation-funded State Coverage Initiatives by the Urban Institute explores select approaches that states could take to implement a BHP. The paper also highlights reasons states may consider the BHP, including:
Author Stan Dorn concludes that, even at this early stage, the BHP option deserves serious consideration from state officials seeking to provide their low-income residents with affordable and continuous coverage, while improving state fiscal circumstances in 2014 and beyond.