Feds OK Wis. Medicaid changes aimed at cost saving

CREATED Apr 27, 2012

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MADISON- Federal officials have approved plans by Wisconsin Gov. Scott Walker's administration to cut costs in state health programs.

The Milwaukee Journal Sentinel reports the changes will lead to some 17,000 people leaving programs or being turned away.

The Obama administration said Friday it had approved the changes after previously requiring the Walker administration to scale back the cuts.

Originally the cuts would have affected 64,800 people. The changes, effective July 1, will cause some adults to leave the program but will shield children from impacts originally proposed by the state.

The state is making the cuts to bridge a gap in the Medicaid program.

State Health Services Secretary Dennis Smith says the changes aim to preserve the "core, safety-net functions" and are necessary "to keep the Medicaid program sustainable."