GOP unveils Medicaid flexibility bill

Congressional Republicans' bill to let states cut their Medicaid rolls would save the federal government nearly $3 billion over the next five years, according to a preliminary estimate from the Congressional Budget Office (CBO).

A group of House and Senate Republicans on Tuesday outlined their bill to repeal the Medicaid "maintenance of effort" provisions in the new healthcare law. The law expands Medicaid beginning in 2014, and the federal government will initially foot the bill for the new beneficiaries. In the meantime, states are prohibited from reducing their eligibility levels. 

A chorus of Republican governors and some Democrats has said these requirements are too burdensome in a tight budget climate. Sen. Mike Johanns (R-Neb.) warned that the result will be further cuts to doctors and other providers, which would limit access to providers despite keeping eligibility at pre-healthcare reform levels.

"They are already going broke trying to provide Medicaid services," he said at a press conference Tuesday.

According to preliminary CBO estimates, the bill would save $2.8 billion over the first five years and $2.1 billion over 10 years.

The bill's lead sponsors, Rep. Fred Upton (R-Mich.) and Sen. Orrin Hatch (R-Utah) said they hope the measure will attract bipartisan support, though it was crafted as a Republican priority.