Basic Health Insurance NY

The Affordable Care Act promises expanded health insurance coverage to all Americans by making health care more affordable and by reducing discrimination in health care. But despite this effort, individuals and families with income more than 138% above the federal poverty level will have a hard time affording health and insurance. They’ll find themselves ineligible for Medicaid yet they could not afford to purchase a policy from private insurers. But ACA (Affordable Care Act) grants states flexibility in putting up a health care system that would bridge the gap for these residents.

One interesting feature of the health care reform is the provision for the establishment of Basic Health Insurance NY. This program will provide comprehensive and inexpensive health insurance that will be especially helpful to low-income individuals and families whose income is 200% below the poverty level. It is especially to aid the low-income and middle-income residents. BHP has the potential of reducing the state’s number of uninsured by 2014. The BHP’s role is very important for it will bridge the gap in terms of affordability between Medicaid and health insurance plans from the health insurance exchange.

If states decide to set up a Basic Health Plan (BHP) they should set up a trust fund. The federal government will contribute 95% of what the federal government would have paid for tax credits under the health insurance exchange as well as the full amount of the portion of what the federal government will contribute for the residents’ health care if they got it through the exchange.

Establishing a BHP will help the state a lot in funding and developing the various New York health insurance programs helping legal immigrants and parents of children who are covered in state-sponsored health insurance plans. Through a BHP, the state can save $511 million. BHP is also thought to offer more affordable health insurance to 467,000 New Yorkers who have low income than the health care exchange. Enrollees under a BHP will have minimal or no premium fee.

BHP is open to individuals who are below the age of 65, who are not eligible for Medicaid and whose income is 200% below the FPL. Residents who qualify for the BHP will no longer be eligible to apply for the medical and insurance policies through the health care exchange.