Bridging the Gap: Exploring the Basic Health Insurance Option for New York

Overview

This Community Service Society report, supported by NYSHealth, outlines the coverage benefits for individuals and the cost savings for the State of establishing a state-run Basic Health Plan (BHP). In addition to providing more affordable coverage to nearly half a million New Yorkers, a BHP could also help some 100,000 uninsured residents gain access to insurance.

The Federal Affordable Care Act (ACA) constitutes a historic opportunity for New York State to offer health coverage to nearly 2.6 million uninsured New Yorkers. One provision of the ACA allows states to establish a BHP, an option that can provide affordable, comprehensive coverage for low-income people.

The report examines the implications of offering a BHP in New York. Specifically, it describes: the amount of Federal funding that would be available; the take-up rate by various eligible population groups; the cost of offering a comprehensive public look-alike product; the types of plan options the State could potentially offer; and the impact the establishment of a BHP would have on New York’s Exchange and the rates of the uninsured upon the full implementation of the ACA in 2014.