Bush, states face off on Medicaid

[Judi Lynn]

Bush, states face off on Medicaid

By Robert Pear
The New York Times
Posted February 16 2004

WASHINGTON · The Bush administration is headed for a confrontation with states over the financing of Medicaid, the nation's largest health program, as federal officials crack down on arrangements used by many states to shift costs to the federal government.

The federal action comes as states, struggling with severe fiscal problems, are cutting benefits and restricting eligibility for the program, which serves 50 million low-income people each year.

Federal officials and auditors contend that states use creative bookkeeping and other ploys to obtain large amounts of federal Medicaid money without paying their share of the costs.
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http://www.sun-sentinel.com/news/nationworld/sfl-amedicaid16feb16,0,1337491.story?coll=sfla-news-nationworld

But in many cases, the Bush administration says, states have paid their share with "phantom dollars" rather than with state or local tax revenues.