Medicaid Cut Places States in Budget Bind

At least 30 states are hoping Congress will pass a six-month extension on Medicaid because most were already counting on the federal money. The New York Times reported the Medicaid provision, which would extend assistance first granted in last year’s stimulus package, was considered such a sure bet by many governors and legislative leaders that they prematurely included the money in their budgeting. But under pressure from conservative Democrats to rein in deficit spending, House leaders in late May eliminated $24 billion in aid to states from the tax and jobs bill that I have been mentioning in my recent blog posts. See http://bit.ly/9ZFptV.

The good news is that the Senate plans to take up the measure this week, and the majority leader, Senator Harry Reid of Nevada, favors restoring the money. Nancy Pelosi, the House speaker, is also looking into reconsidering the appropriation of funds.

Read the full article from the New York Times here.