Arizona to Ask for Medicaid Waiver to Reduce Eligibility

Arizona plans to ask for a federal waiver so the state can save money by reducing eligibility requirements for Medicaid, according to a report by the Washington Post.

The waiver request, approved by the Arizona legislature and signed by GOP Governor Jan Brewer, will be "daring Health and Human Services Secretary Kathleen Sebelius to refuse," the Post reports. To save the state $541 million in 2012 and $900 million in 2013, the Arizona waiver request would remove all 250,000 childless adults from Medicaid as well as 30,000 parents with incomes above half of the poverty line.

The Post asserts Arizona is the first state to request such a waiver. However, HHS has refused to act on state waiver requests before, such as a request from Texas three years ago. In August 2008, during George W. Bush's presidency, CMS informed Texas officials that "a number of areas under this proposal have been identified as problematic," making approval impossible, according to the Austin American-Statesman.

Meanwhile, 29 Republican governors have signed a letter calling on President Obama and Congress to remove federal provisions that prohibit states from tightening eligibility requirements for Medicaid. "The effect of federal requirements is unconscionable," the Republican governors wrote in their letter earlier this month. "States are unable to afford the current Medicaid program, yet our hands are tied."

Recently the U.S. Supreme Court has agreed to decide whether states should have more freedom to cut Medicaid payments. California, joined by 22 other states in the lawsuit, has been seeking to cut $1 billion from Medi-Cal, California's Medicaid program.

Read the Washington Post report on Medicaid eligibility.

Read more coverage on states' efforts to cut Medicaid:

- Supreme Court to Hear States' Call to Cut Medicaid Spending

- Governors Want Reform Law Changed So They Can Reduce Medicaid Coverage

- New Governor of New York Planning to Cut Medicaid

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