Council hearing: District officials outline plan to create Basic Health Plan for low‑income residents

Chair Christina Henderson opened the Committee on Health hearing on June 9, saying the session would focus on the Health Benefit Exchange, the Department of Healthcare Finance and the Office of the Deputy Mayor for Health and Human Services.

Mila Kauffman, director of the DC Health Benefit Exchange Authority (HBX), told the committee that HBX and its federal partners plan to implement a Basic Health Plan (BHP) under the Affordable Care Act to cover lower‑income residents who would otherwise buy commercial coverage through DC Health Link. "Our goal is continuity of coverage and continuity of care for residents," Kauffman said.

Kauffman said the federal option under ACA Section 1331 allows states to design a BHP that can be financed largely with federal funds: federal rules provide 95% of the value of premium tax credits for the eligible population but do not fund state administrative and operational costs. HBX has convened advisory councils and working groups — carrier, IT and operations — and hired actuaries to model benefit designs and costs.

Why it matters: city leaders presented the BHP as a way to avoid shifting substantial out‑of‑pocket costs to residents who would lose Medicaid eligibility under the mayor's budget proposals.…