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25 states moving to cut Medicaid funding

WASHINGTON, Jan. 28 (UPI) -- At least 25 U.S. states faced with steep budget deficits have either proposed or enacted cuts to their Medicaid low-income health insurance programs.

The unprecedented budget cuts come at a time when demand for the medical coverage is running at all-time highs and potentially leaves millions of patients with reduced levels of care or no coverage at all, The Wall Street Journal reported Wednesday.

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A report set to be released Wednesday by Families USA, an advocacy group in Washington, indicated that 12 states have targeted for cuts the State Children's Health Insurance Program, SCHIP, which provides health care for children from low-income families that earn too much to qualify for Medicaid, the newspaper said.

Families USA estimates that more than 250,000 people will lose care because of cuts already enacted, while proposed cuts could affect millions more. The Journal said state officials are hoping federal funding will restore some of the cuts, with the House of Representatives expected to vote on a stimulus package that would provide about $87 billion over 27 months to help fund state Medicaid programs.

President Barack Obama is pushing lawmakers to send him the bill to sign by mid-February.

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