Obama Budget Spares Medicaid From Deep Cuts

WASHINGTON (April 4, 2013)--President Barack Obama's budget will steer clear of major cuts to Medicaid, which wouldn't go over too well at a time when his administration is trying to persuade skeptical governors to expand the giant health care program for the poor.

Expanded Medicaid is a cornerstone of Mr. Obama's health care overhaul and it’s expected to cover about half the nearly 30 million people who are supposed to be gaining health insurance.

But 17 states are still trying to decide whether to take the deal and Texas Gov. Rick Perry flatly rejects it.

In the past Mr. Obama has proposed Medicaid spending curbs that the states didn't like.

Activists working with the White House say they have been assured by senior officials those cuts are now off the table.

The president's budget will be released next Wednesday.

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