Biden-Harris Administration Extends Hundreds of Millions in Funding to Minnesota and New York Basic Health Programs, Supported by American Rescue Plan

Thanks to an updated formula for calculating federal payments, Minnesota & New York will receive an estimated $850 million in additional funding in 2022, as well as added funds for 2020 and 2021.

The Centers for Medicare & Medicaid Services (CMS) is providing approximately $100 million in additional funding in 2022 to support MinnesotaCare, Minnesota’s Basic Health Program (BHP), and $750 million to support the Essential Plan, New York’s Basic Health Program (BHP). Both states will also receive added funds for 2020 and 2021. The additional funds, made available through the American Rescue Plan, will increase New York and Minnesota’s ability to provide affordable, quality health care coverage to approximately 1.1 million individuals.

“Thanks to the American Rescue Plan, we are making increased investments to protect health coverage access for vulnerable Minnesotans and New Yorkers,” said Health and Human Services Secretary Xavier Becerra. “MinnesotaCare and New York’s Essential Plan are strong examples of the Biden-Harris Administration working hand-in-hand with states to help more Americans realize the peace of mind that comes with health coverage.”

“The Basic Health Program is an important option for states to provide comprehensive health coverage to low- and moderate-income families,” said CMS Administrator Chiquita Brooks-LaSure. “I’m glad that we can support Minnesota and New York’s successful programs, which ensure that their residents have access to affordable, comprehensive care.”

Section 1331 of the Affordable Care Act gave states the option to establish a BHP, a coverage program for residents whose income is above levels that would otherwise make them eligible for Medicaid and CHIP. Through BHPs, states can provide coverage to low- and moderate-income individuals and families who do not qualify for Medicaid, CHIP, or other minimum essential coverage.

New York and Minnesota are the only states currently implementing a BHP. The Biden-Harris Administration stands poised to lend expertise to others considering the program—especially given success across these two states. Combined, both states provide coverage to 1.1 million people.

For more information on the revised federal formula that made this additional funding possible, consult the informational bulletin released today by CMS’s Center for Medicaid and CHIP Services.

To learn more about MinnesotaCare—including information about eligibility and enrollment—visit MN.gov.

To learn more about the Essential Plan in New York—including information about eligibility and enrollment—visit Info.NYStateOfHealth.NY.gov.