PHOENIX, Feb. 16 (UPI) -- Federal officials said Arizona could cut 250,000 adults without children from its Medicaid program without risking a federal backlash.
Gov. Jan Brewer had written the U.S. Department of Health and Human Services to clarify the federal position on the state cutback, as matching federal funds can be withheld from states that eliminate mandated coverage, The Arizona Republic reported Wednesday.
In a letter to the governor, Health and Human Services Secretary Kathleen Sebelius said Arizona could cut childless adults from the program, as the state's program would be reviewed Sept. 30.
The state had argued that covering poor adults without children went above and beyond the minimum federal requirements. But voters in the state had approved the use of "available funding" to cover the group in a 2000 referendum, setting up the likelihood of lawsuit, the newspaper said.
The state is seeking to close a budget gap of $763 million. Brewer said she was "encouraged" by the letter from Sebelius.
