Throughout the country, the recession has created budgetary constraints at the state level. Pennsylvania is no different. The budget pressures have resulted in diverse efforts to contain and reduce expenditures.

Certainly one of the largest expenditures for Pennsylvania and, indeed for all states, is Medical Assistance (also known as Medicaid). Medical Assistance benefits have thus been a focus of many states in their efforts to cut costs. The loss of federal stimulus funds this year, which had provided increased federal matching funds for Medical Assistance, has created further financial pressures on the Medical Assistance program.

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