Feds to Help Cover Texas Medicaid Costs for Katrina Victims

In the last two weeks, Texas has welcomed an estimated 200,000 Katrina evacuees. Among the many unplanned expenses that the State has covered is millions of dollars for Medicaid. It's estimated that the state's Medicaid program could spend an extra $30 million a month. Lawmakers in Washington, DC say the Federal Government will help cover state costs.

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Republican Texas Senator Kay Bailey Hutchison has introduced legislation requiring the federal government to reimburse states for all Medicaid costs incurred by helping displaced victims of Hurricane Katrina. Normally states share the cost of Medicaid. Texas Republican Senator John Cornyn co-sponsored the bill. Hutchison says the total cost is unknown.

Democratic Houston Congressman Gene Green has introduced similar legislation in the House. Lawmakers hope to rush the bill through congress before the end of next week.