In the lawsuit, New York and Minnesota are challenging the HHS cutting off federal funds to the program. They charge that the agency’s actions violate the Administrative Procedure Act.
The two states’ BHPs cover more than 800,000 people combined, including New York’s Essential Plan that covers more than 700,000 low-income New Yorkers. States with a BHP receive federal funding equal to 95% of the premium tax credits and cost-sharing reductions (CSRs) that the federal government would have otherwise needed to spend if people on those plans were on an ACA exchange plan.
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