States get new Medicaid fee flexibility

States will have sweeping authority to set Medicaid premiums and higher co-payments under a new federal rule, Washington officials say.

Co-payments cover doctors' services, hospital care and prescription drugs provided to low-income people under Medicaid.

While the rule is expected to save money for the federal government and the states, public health experts and some U.S. officials predict many low-income people will delay or forgo care because of the higher charges, The New York Times says.

The rule carries out a law signed by President Bush in 2006. In a preamble to the rule, the administration noted, This flexibility will help protect the program from cutbacks in a time of tight state budgets.

Governors reportedly have sought this kind of discretion for a long time.

Some individuals may choose to delay or forgo care rather than pay their cost-sharing obligations, the administration admitted.

Public health experts warn such delays could cause serious health problems, requiring more expensive care at a later date.

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