AP source: Obama to propose $25B more Medicaid help for states in Monday’s budget plan

AP source: Obama plans Medicaid help for states

WASHINGTON — The Obama administration is proposing to extend a program that’s helping cash-strapped states pay for Medicaid.

A Democratic official with knowledge of the budget proposal says the $25 billion plan will be part of the budget President Obama presents on Monday.

The proposal would extend for six months — until July of next year — the help that states got in last year’s economic stimulus bill with their Medicaid programs.

Under the Medicaid initiative, the federal government takes on a higher share of state Medicaid costs. States with higher unemployment rates get additional help.

Large states with generous Medicaid programs such as California and New York stand to benefit most from the plan. The Democratic official, not authorized to speak publicly about the plan its release, spoke on condition of anonymity.