AUSTIN — The U.S. Centers for Disease Control and Prevention (CDC) is expected to pay about $10.2 million to cover costs for health care services it is covering under its mandate to cover health insurance for workers under the Affordable Care Act.
The CDC will pay about 3 percent of the costs, which it has not yet announced, said a person familiar with the matter, speaking on condition of anonymity because the deal was not made public.
The agency has been reimbursing about $4 billion to about 6 million people for coverage under the law since October, according to the CDC’s website.
The agency does not have a deadline for the payment, the person said.
The payment would cover the cost of the agency’s coverage, the cost-sharing payments it makes to health plans for employees and the cost for reimbursements to the insurers that provide coverage, including a subsidy to help people buy coverage on their own.
The payments are the first payment under the Medicaid program, which provides health insurance to more than 24 million people, including more than 4 million children and their families.
Under the ACA, the federal government reimburses states for the costliest part of their Medicaid spending, about $12 billion, on top of a formula based on the number of enrollees, or the percentage of adults with insurance.
The ACA also has a cap on how much the federal Government can pay states, which have used that cap to set a higher threshold than the states to receive payments.
The Centers for Medicare and Medicaid Services (CMS) has said it will spend about $2.8 billion on Medicaid coverage this year, $1.6 billion of which is being covered by the payments.
The remaining $1 billion will be reimbursed through March.
The deal is the latest in a series of health care deals between the CDC and private health insurers to help pay for coverage for workers who gained health insurance under the ACA.
The government will cover about 4.5 million workers, including about 3.6 million children, who gained coverage under Medicaid, the CDC said in February.
The agreement with Anthem, one of the largest employers in the United States with more than 20 million workers who are covered by Medicaid, was announced Friday.
The deal also is expected in July.
The government has also paid $5.3 billion to insurers, including $1 million to Anthem, for payments covering health care costs incurred in 2017, the Centers for Medicaid and Medicare Services said.
Chamber of Commerce said it was pleased with the announcement.
“The President’s proposed budget would continue to protect the middle class while creating the jobs of the future.
The Affordable Care Acts Medicaid Expansion, which we are all proud of, is an important step in making sure the health care system can serve all Americans,” said Chuck Smith, CEO of the Chamber of the Commerce.