House passes Medicaid proposal to head off cuts

FRANKFORT, Ky. (AP) - The House has passed a bill that would
shore up the Medicaid budget without making any immediate cuts to
other government services.

The floor was 94-4 on Monday evening.

The proposal gives Gov. Steve Beshear's administration until
Aug. 8 to avoid cuts by privatizing additional Medicaid services.
Beshear had proposed that portion of the plan, saying his
administration could save $425 million by entering into contracts
with managed-care organizations.

Potential cuts could kick in on Oct. 1 for most government
agencies only if Beshear is unable to achieve the necessary

Health and Family Services Secretary Janie Miller assured House
lawmakers Monday that the privatization plan would save enough
money to fill the budget gap in the program that serves more than
800,000 elderly, disabled and poor Kentuckians.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

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