Interesting article from Stateline.org on the prospects of getting an extension of the increased Medicaid funding through an enhanced Federal Match, requiring less money to match from states, that was part of the Federal Stimulus funds. Kentucky, in its various budget proposals counted on this funding coming through and utilized this increased match to balance the budget. If this funding doesn't come through from Congress it could leave a large whole in the budget and in Medicaid.
Kentucky isn't alone apparently two-thirds of states have predicated their budgets based on this funding.
Time running short for Medicaid help: "States are banking that Congress will extend a piece of the federal stimulus law that is helping them pay for their Medicaid programs. Two-thirds of the states crafted budgets for fiscal 2011 assuming that more aid would come through, and as many as 19 states have no backup plan in place should it not. But with spending getting new scrutiny on Capitol Hill, the assistance may not be coming anytime soon, if it comes at all."