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University of Wisconsin–Madison
Poverty-related issues in the news, from the Institute for Research on Poverty

Day: January 21, 2011

State Medicaid Programs – Arizona, Minnesota

  • Arizona lawmakers back governor on Medicaid waiver, By Paul Davenport (AP), January 20, 2011, Washington Post: “The Arizona Legislature on Thursday authorized Republican Gov. Jan Brewer to seek a federal waiver allowing the cash-short state to temporarily remove nearly 300,000 people from its Medicaid rolls in the first such request by a state. The House and Senate approved the authorization requested by Brewer amid questions about whether the waiver request would be approved by President Barack Obama’s administration, and if the legislation would survive an anticipated court challenge. Brewer wants to suspend the eligibility of 280,000 low-income adults, which would scale back the state’s coverage to near that of most other states and save $541.5 million. It’s the single biggest element in Brewer’s plan to eliminate a projected $1.1 billion shortfall in the next state budget…”
  • Dayton: Medicaid shift will be soon, By Warren Wolfe, January 20, 2011, Minneapolis-St. Paul Star Tribune: “Briskly brushing aside the views of his predecessor, Gov. Mark Dayton said Thursday that Minnesota will begin a major expansion of its Medicaid program on March 1, not in October as the Pawlenty administration had projected. His decision to move about 95,000 patients into Medicaid was a ‘no-brainer,’ Dayton said at a news conference. The shift will offer more comprehensive care for most of the affected patients and is expected to bring Minnesota about $1.1 billion in federal funds over the next biennium. There will be no net cost to the state beyond what it would have spent for those patients who are currently on two state health plans, state analysts concluded. While the move was applauded by many health care providers and Dayton’s DFL allies, Republicans said the expansion will be shortsighted…”

State Unemployment Funds

States will soon have to start paying interest on their massive unemployment borrowing, By Olga Pierce, January 14, 2011, ProPublica: “Sometimes it’s time to pay the piper. And sometimes that piper is the federal government. And sometimes the piper wants more than $1 billion. Soon. Because of the high jobless rate and past fiscal irresponsibility, 30 states have collectively had to borrow more than $40 billion from the federal government just to keep unemployment insurance checks in the mail. A provision in the stimulus bill made those loans interest-free for an extended grace period. But no more. Efforts to include an extension of the grace period in Obama’s tax cut extension enacted at the end of last year failed, and the first batch of 14 states will have to start paying interest before the end of this year. Given that state budgets need to be hammered out in advance, that means state legislatures will soon face tough choices as they come back in session…”