States: Medicaid changes costly

AP/Yahoo News, March 4, 2008

States estimate that proposed changes to Medicaid would cost them about $50 billion in federal aid over the next five years, according to a Democratic congressional report. One proposed regulation would limit Medicaid reimbursement to public hospitals to no more than the cost of providing a particular service, and another would prohibit billing Medicaid for the costs of medical interns and residents. Federal officials say the changes are designed to ensure that providers don't bill the program for more than the costs of providing care and that each states pay their fair share.