Wednesday, May 4, 2011

GOP Unveils Medicaid Flexibility Bill

By Sam Baker

Congressional Republicans' bill to let states cut their Medicaid rolls would save the federal government nearly $3 billion over the next five years, according to a preliminary estimate from the Congressional Budget Office (CBO).

A group of House and Senate Republicans on Tuesday outlined their bill to repeal the Medicaid "maintenance of effort" provisions in the new healthcare law. The law expands Medicaid beginning in 2014, and the federal government will initially foot the bill for the new beneficiaries. In the meantime, states are prohibited from reducing their eligibility levels.

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