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November 2, 2012

Federal review extends wait on state Medicaid cuts

A $20 million cut to Maine's Medicaid program is on hold while the federal government reviews the budget-cutting decision for compliance with the Obama administration's Affordable Care Act, according to the Bangor Daily News.

The cuts were scheduled to take effect Oct. 1 but the federal government's request for more information about the program gives federal decision makers another 90-days to deliver a ruling to the state.

The move follows Attorney General William Schneider's September request for an expedited decision on the cuts, which the federal government denied.

The cuts would affect 36,000 low-income people, the paper reported, by eliminating coverage for 19- and 20-year-olds, restricting income eligibility requirements for low-income parents and reducing program access for elderly people who also qualify for Medicare benefits.

At issue is whether the new federal health care law will allow the state to cut its existing Medicaid program before its required expansion of the program in 2014.

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