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HHS will not prohibit payments to QHPs from foundations

  • 1.  HHS will not prohibit payments to QHPs from foundations

    Posted 05-28-2014 03:30 PM

    HHS will not prohibit payments to QHPs from foundations

    The Catholic Health Association of the United States (CHA) has kept AHP informed on developments regarding the position of the Department of Health and Human Services (HHS) on premium subsidies provided by private, not-for-profit foundations to qualified health plans (QHPs) on behalf of individuals who enroll in coverage via the Health Insurance Marketplaces.

    In a letter responding to calls for clarity from CHA and the American Hospital Association (AHA), HHS Secretary Kathleen Sebelius confirmed on May 21, 2014, that "as a general matter, such payments are not prohibited by HHS's rules to the extent they are provided in a manner consistent with the February 7, 2014 FAQ." Although that FAQ stated that the department did not discourage such subsidies, a March 19 interim final rule regarding third-party subsidies created uncertainty regarding HHS's official position because it did not include the Feb. 7 FAQ's statement regarding premium and cost-sharing payment from charitable foundations. According to HHS, payments must be made on behalf of recipients who "satisfy defined criteria that are based on financial status and do not consider enrollees' health status," and should cover the entire policy year.

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    Susan Simolunas
    Communication Coor
    Association for Healthcare Philanthropy
    Falls Church VA
    (703) 532-6243
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