
CMS' Basic Health Plan Called into Question
The Basic Health Plan (BHP) may have counterproductive results.
The Basic Health Plan (BHP), a rule proposed by the Centers for Medicare & Medicaid Services (CMS), was created to help low-income individuals who are just over the Medicaid eligibility limit obtain affordable health plans. It was also implemented to cover beneficiaries whose Medicaid eligibility status fluctuates due to variations in their income (also known as “churning”). While CMS saw BHPs as a way to control costs and drive value-based care, the plan seems to have counterproductive
“Under the proposed rule, each state that intends to implement a BHP must submit a ‘Basic Health Program blueprint,’ following the model of the blueprints that states have submitted for operating their own exchanges,”
So far, Minnesota is the only state to implement a BHP-like plan, and The Minnesota Medical Association and Minnesota Hospital Association say the formula is deficient. State officials say the rule threatens sustainability of MinnesotaCare, Minnesota’s publically subsidized healthcare program. In comments sent to CMS, state officials wrote that “In effect, this methodology misaligns incentives so that a state like Minnesota gets punished for leading the nation in healthcare reform.”
BHPs, which were initiated as part of the Affordable Care Act, were slated for statewide implementation in 2014, but that deadline has been pushed to 2015. Due to the delay, no official guidelines have been written and some states fear the delay may reach into 2016.
“We all thought we were going to be able to start in 2014, and then we waited for the rules, and we waited and waited and waited,”
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