Wyoming and South Carolina Senators Introduce Medicaid “Opt-Out” Legislation

U.S. Senators Lindsey Graham (R-S.C.) and John Barrasso (R-Wyo.) have introduced the Medicaid Flexibility for States Act legislation, which would allow states to opt out of Medicaid expansion under President Obama’s healthcare reform law.

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Under the healthcare reform law, approximately 17 million new people will be added to Medicaid rolls beginning in 2014. The senators argue states are struggling with growing budget shortfalls and have proposed cutbacks in provider reimbursement and services not mandated by the federal government to deal with the problem. Sen. Barrasso said the required Medicaid expansion will force states to take away funding from other important state services, such as education.

Sen. Graham said expansion of Medicaid in South Carolina under the reform law will add an additional $1 billion in state matching funding requirements.

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