State Medicaid Funding Faces Rocky Future

States have been spared from making more severe Medicaid cuts due to enhanced payments from the federal stimulus bill, but with the extra funding drying up at the end of the year, state Medicaid programs face a tough future, according to a report by CNN Money.

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The Senate and House passed a six-month extension of the Medicaid expansion, but an additional $25 billion is needed to cover the measure before it can be sent to President Obama for signing.

However, 2011 budgets released by at least 21 states are depending on the extended federal funds, and it is unclear what they would do once that money runs out.

“States now are coming to that point where they will have to make additional cuts or find new sources of revenue for fiscal 2011 and that will continue in fiscal 2012,” Todd Haggerty, policy associate at the National Conference of State Legislatures, said in the report.

Read CNNMoney’s report on Medicaid expansion.

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