The Basic Health Program (BHP), as defined in the Patient Protection and Affordable Care Act (ACA), gives states the option to provide health insurance coverage to consumers with incomes between 138% and 200% FPL through a state administered program, supported with federal funds. States opting for the BHP receive 95% of the federal funding that would have been expended on federal tax subsidies had the individual participated in the Exchange. In turn, the state must use the federal dollars to provide coverage at least as comprehensive and affordable as that provided through the Exchange.

A report, "Analysis of the Basic Health Program Options for New Hampshire" authored jointly by Mercer and the Manatt Health Solutions team of Melinda Dutton, Deborah Bachrach and Laura Braslow, provides an assessment of the BHP option for the state of New Hampshire. The paper presents a suite of options for state policymakers and stakeholders to consider as New Hampshire contemplates whether to implement the BHP and evaluates the financial feasibility of the BHP option in the state. The analysis includes an overview of policy options for the use of any excess federal subsidies above the cost of the BHP, issues related to provider availability, and a discussion of the implications for the state health benefit exchange.