Basic Health Program Funding Methodology Final Notice for Program Year 2021


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Today, the Centers for Medicare & Medicaid Services (CMS) published the final notice for the Basic Health Program (BHP) federal funding methodology for program year 2021. This document provides the methodology and data sources necessary to determine federal payment amounts for program year 2021 to states that elect to establish a BHP.

Section 1331 of the Affordable Care Act gives states the option of creating a Basic Health Program (BHP), a health benefits coverage program for low-income residents who would otherwise be eligible to purchase coverage through the Health Insurance Marketplace. The Basic Health Program gives states the ability to provide a coverage option for low-income residents whose income fluctuates above and below Medicaid and Children's Health Insurance Program (CHIP) levels.