Budget cuts bigger risk to states than healthcare law: Moody's

Reuters, August 22, 2012

When it comes to healthcare, Congressional attempts to reduce the federal budget deficit pose a greater risk to U.S. states' finances than an expansion of the insurance program for the poor known as Medicaid, Moody's Investors Service said on Tuesday. In June, the Supreme Court struck down part of the 2009 healthcare reform law compelling states to cover more people with Medicaid, and many conservative governors embraced the decision as a way to opt out of the expansion. Ultimately, a state's decision to opt in or out of the expansion will likely not affect its ratings, Moody's said.


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