FOLLOW US

New York News January 27, 2018 3 mins read

New York, Minnesota Sues HHS over Funding Cut to Basic Health Program

New York News ı By Marivic Cabural Summers

0 Comments

health care

The Attorney Generals (AGs) of New York and Minnesota sued the Department of Health and Human Services (HHS). The AGs alleged that the agency’s decision to abruptly cut over $1 billion funding for Basic Health Program (BHP) is unlawful.

New York and Minnesota are the only states that operate BHPs. The program in both states collectively provides health insurance coverage to more than 800,000 residents.

New York created its BHP under the Affordable Care Act (ACA). It is called Essential Plan and its funding comes primarily from the federal government. A significant number of low-income New Yorkers depend on the program.

Defending vital funds for low-income residents

In a statement, New York AG Eric Schneiderman said, “The Essential Plan is a lifeline for over 700,000 low-income New Yorkers. The abrupt decision to cut these vital funds is a cruel and reckless assault on New York’s families – and we will not allow it.”

Additionally, the AG Schneiderman said, “We’re suing to defend these vital funds and the quality, affordable health care they ensure for New Yorkers.”

On the other hand, Minnesota AG Lori Swanson said, “For each dollar Minnesota sends to Washington D.C., we get just 53 cents back. This lawsuit seeks to avoid Minnesota losing hundreds of millions of dollars of payments in the coming years.”

HHS funding cut will cause devastating injury to New York & Minnesota

In the lawsuit, the AGs, their states received emails from the HHS on December 21, 2017. The agency indicated that it will not pay the $266 million due to New York and $32 million due to Minnesota. Those amounts are for the states’ BHP expenses for the first quarter of 2018.

The HHS’ reason was the federal government’s decision in October last year to stop making CSR payments to insurers offering QHPs on exchanges. There is a separate lawsuit challenging that earlier decision.

New York and Minnesota immediately submitted alternative proposals to the HHS to preserve most of the federal funding.  However, the agency did not consider their proposals, which replicated the marketplace experience of other states.

The AG’s argued that the federal law requires HHS to consider alternatives to minimize harm to states due funding cuts. According to them, agency’s decision to terminate BHP funding “inflicts direct and potentially devastating injury on the states.”

Additionally, AGs Schneiderman and Swanson said HHS “failed to abide by the mandatory notice-and-comment process for amending an existing rule.” It did not provide a reasonable explanation for suddenly reducing BHP payments to the states by over $1 billion annually.

Furthermore, the agency made a mistake by not considering and adopting the alternative proposals submitted by New York & Minnesota.

Finally, the AGs emphasized that the agency’s reason that it lacks statutory authorization to pay the CHR component of its BHP payments is meritless.

The AGs are requesting the court to compel HHS restore the states’ BHP funding as required by the federal law.

Previous Article

Pennsylvania Cong. Meehan Will Not Seek Re-Election after Sexual Harassment Allegations

Read More
2032 Posts

Marivic Cabural Summers

Marivic has been a freelance writer/journalist for nearly 20 years. She strictly adheres to the ethical standards in journalism. For her, integrity is everything. Readers deserve to know that real story. She previously worked as research analyst and editor at Lombardi Financial and has written for various websites including The Motley Fool, ValueWalk, IcannWiki and was a news writer/radio program producer at Nation Broadcasting Corporation. Marivic holds a BA in Mass Communications.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America November 12, 2026 1 killed, 4 hurt in Logan Circle gym attack By – Rachel Moore
America November 12, 2026 Dan Hicks, NBC Sports announcer, dies at 64 By – Rachel Moore
America November 11, 2026 Brooklyn Building Collapse Kills 2 as Rescuers Search Rubble By – Michallie K Harrison
America November 11, 2026
A Veterans Day Betrayal: House Advances…

OPINION | The Republican-led House marked Veterans Day by advancing…

By – Michallie K Harrison
America November 11, 2026
Trump’s SNAP Cuts: What’s Law and…

President Donald Trump’s administration is proposing new SNAP cuts that…

By – Michallie K Harrison
America November 11, 2026
Nvidia’s China Chip Scandal Deepens As…

By Samuel López | USA Herald A Chinese university closely…

By – Samuel Lopez
America November 11, 2026
Jim Jordan Ousts Steve Scalise to…

House Republicans on Tuesday elected Rep. Jim Jordan of Ohio,…

By – Derek Johnson
America November 11, 2026
Rate Hikes Are Back on the…

A hotter-than-expected October inflation report has pushed the 10-year Treasury…

By – Derek Johnson
America November 11, 2026
Russia and Ukraine Agree to the…

Russia and Ukraine agreed Wednesday to what U.S. negotiators called…

By – Derek Johnson
America November 11, 2026
AI Godfather Warns of Chernobyl-Style Blackout…

By Samuel López | USA Herald | November 11, 2026…

By – Samuel Lopez
America November 11, 2026
Home Depot Hit With Lawsuit Over…

ATLANTA (USA Herald) – Home Depot received approximately $730 million…

By – Samuel Lopez
America November 10, 2026
U.S. Soldier Arrested in U.K. in…

British police arrested a senior U.S. Army soldier Tuesday near…

By – Michallie K Harrison
America November 10, 2026
Oil Giants Earn $25 Billion as…

ExxonMobil and Chevron earned a combined $25.3 billion in the…

By – Michallie K Harrison
America November 10, 2026
Thomas Markle’s Latest Crisis: Meghan’s Estranged…

Thomas Markle, the estranged father of Meghan, the Duchess of…

By – Jackie Allen
America November 10, 2026
Colts agree to trade WR Josh…

Josh Downs is officially getting the fresh start he wanted.…

By – Rachel Moore
America November 10, 2026
US Sues Lyft Over Alleged Disability…

The U.S. Department of Justice has taken Lyft to court,…

By – Rachel Moore
America November 10, 2026
Insurtech Firm Reports Higher Quarterly Deficit…

Insurtech company Lemonade recorded a net loss of approximately $43.7…

By – Rachel Moore
America November 10, 2026
Senior US Soldier Arrested by UK…

A senior member of the U.S. Army has been arrested…

By – Tyler Brooks
America November 10, 2026
Vitamin K Deficiency Bleeding: Why the…

A single injection administered in the first hours of life…

By – Tyler Brooks
America November 10, 2026
Texas Man Charged With Murder in…

A cruise vacation took a horrifying turn when a woman…

By – Tyler Brooks
America November 10, 2026
Pete Hegseth faces impending House impeachment…

U.S. Defense Secretary Pete Hegseth faces a potentially historic political…

By – Tyler Brooks
America November 10, 2026
Hulu Revisits California’s Speed Freak Killers…

Hulu is taking viewers back into one of California’s most…

By – Jackie Allen
America November 10, 2026
Infant Bleeding Surges as Vitamin K…

Infant bleeding rose as fewer newborns received vitamin K shots,…

By – Michallie K Harrison
America November 10, 2026
UGA Leads $8 Million Initiative to…

The University of Georgia (UGA) has received an $8 million…

By – Jackie Allen
Breaking News November 10, 2026
Nvidia Opens Investigation Into CEO Jensen…

Nvidia's board has opened an investigation into reports that CEO…

By – Derek Johnson
America November 9, 2026
Jasmyne Garcia  Beaten to Death  in…

MORGAN HILL, Calif. — Jasmyne Garcia, 34, was allegedly beaten…

By – Jackie Allen
America November 9, 2026
Natalee Holloway Case Returns to Spotlight…

  ARUBA — More than 20 years after Natalee Holloway…

By – Jackie Allen
America November 7, 2026
Can Elephants Sue For Freedom? Hawaii…

What’s at Stake for Mari and Vaigai A legal first…

By – Samuel Lopez
America November 7, 2026
On Monday Supreme Court Weighs Whether…

What’s at Stake for Federal Prisoners A prisoner’s broken tailbone…

By – Samuel Lopez
America November 7, 2026
Mike Tyson And Ric Flair Score…

Inside the $50 Million Legal Battle A federal judge rejected…

By – Samuel Lopez
America November 6, 2026
Hackers Target French Blood Banks In…

By Samuel Lopez – USA Herald A cyberattack targeting blood-storage…

By – Samuel Lopez
America November 5, 2026
AI Flagged Bias in Trump Climate…

WASHINGTON — Researchers on a Trump climate panel asked Microsoft…

By – Michallie K Harrison
America November 5, 2026
Russell Brand Convicted of Rape, Taken…

LONDON — Russell Brand was convicted of rape and three…

By – Michallie K Harrison
America November 8, 2026
Dana White Reportedly Declines Trump White…

By Samuel Lopez – USA Herald | November 8, 2026…

By – Samuel Lopez
America November 5, 2026
Dallas Cowboys Face  Crisis After Crushing…

By Jackie Allen | USA Herald The Dallas Cowboys are…

By – Jackie Allen
America November 4, 2026
WNBA: DeWanna Bonner Makes Emotional Admission…

ATLANTA — The WNBA Finals ended in heartbreak for the…

By – Jackie Allen
America November 4, 2026
Inés Gómez Mont Arrested by ICE…

MIAMI —  Inés Gómez Mont, a former television personality who…

By – Jackie Allen
America October 31, 2026
Bill Belichick and Jordon Hudson Reportedly End…

Bill Belichick and Jordon Hudson reportedly ended their romantic relationship…

By – Jackie Allen
America October 29, 2026
Brewers Beat Rays to Win First…

ST. PETERSBURG, Fla. — The Milwaukee Brewers won their first…

By – Michallie K Harrison

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter