Feds to states: No pressure on Medicaid

WASHINGTON -- Administration officials are telling the states there's no pressure to decide whether to expand Medicaid for their low-income residents under President Barack Obama's health care overhaul law.

The Supreme Court gave states the option of accepting or rejecting the Medicaid expansion. It's designed to cover about 15 million low-income people around the country, starting in 2014.

In a letter to Republican governors Friday, the administration says there's no deadline for states to decide on Medicaid. And states can receive federal funding to explore their options without having to pay it back if they later decline.

Marilyn Tavenner, administrator of Medicare and Medicaid, says in the letter she expects states "will recognize that this is a good deal," since federal taxpayers are covering the lion's share of costs.

Meanwhile, governors from around the U.S. began three days of meetings Friday that include discussion of whether to expand Medicaid to more low-income residents.

As the National Governors Association opened meetings in Williamsburg, Va., the state leaders are comparing their plans and debating the economic costs and benefits of an expansion.

Republican governors in at least six states say they will reject federal money to provide coverage to more residents, and governors in at least 25 other states said they're still considering how to proceed.

Virginia Gov. Robert McDonnell, head of the Republican Governors Association, said the program may cost the state too much unless it is overhauled.