On April 7, Milliman Inc. published a brief examining state options for the Basic Health Plan (BHP) under the national health care reform law.  Health reform allows states to offer a BHP in lieu of subsidized exchange coverage to certain low-income individuals who are not Medicaid eligible.  The brief discusses how states can determine if doing so is in their best interest and understand financial risk and potential benefits.

From the report:

The feasibility of operating a BHP depends on a state's willingness to take on a risk that it will not otherwise have; the alternative to a BHP is to leave the state's lower-income, non-Medicaid population to the exchange system, in which the state carries no risk.  

Full report: Healthcare Reform and the Basic Health Program Option (PDF | 292.70 KB)

Milliman Inc. (2011).  Healthcare reform and the Basic Health Program option.  Palmer, J.