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GAO-14-462R 1 (2014-03-27)

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G      A     O        U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325655


March 27, 2014

The Honorable Ron Wyden
Chairman
The Honorable Orrin G. Hatch
Ranking Member
Committee on Finance
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
        Basic Health Program: State Administration of Basic Health Programs; Eligibility and
        Enrollment in Standard Health Plans; Essential Health Benefits in Standard Health
        Plans; Performance Standards for Basic Health Programs; Premium and Cost Sharing
        for Basic Health Programs; Federal Funding Process; Trust Fund and Financial Integrity

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Basic Health Program: State Administration of Basic Health
Programs; Eligibility and Enrollment in Standard Health Plans; Essential Health Benefits in
Standard Health Plans; Performance Standards for Basic Health Programs; Premium and Cost
Sharing for Basic Health Programs; Federal Funding Process; Trust Fund and Financial
Integrity (RIN: 0938-AR93). We received the rule on March 11, 2014. It was published in the
Federal Register as a final rule on March 12, 2014. 79 Fed. Reg. 14,112.

The final rule establishes the Basic Health Program (BHP), as required by section 1331 of the
Affordable Care Act. The BHP provides states the flexibility to establish a health benefits
coverage program for low-income individuals who would otherwise be eligible to purchase
coverage through the Affordable Insurance Exchange (Exchange). The BHP complements and
coordinates with enrollment in a qualified health plan (QHP) through the Exchange, as well as
with enrollment in Medicaid and the Children's Health Insurance Program. The final rule also
sets forth a framework for BHP eligibility and enrollment, benefits, delivery of health care
services, transfer of funds to participating states, and federal oversight. Additionally, this final
rule amends another rule issued by the Secretary of the Department of Health and Human
Services in order to clarify the applicability of that rule to the BHP.


GAO-14-462R

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