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PiPress: Pawlenty’s health care cuts could jeopardize millions in federal aid.

The Pioneer Press is reporting that Tim Pawlenty’s recent proposal to cut the health care benefits of as many as 113,000 Minnesotans may threaten some of the economic recovery aid from the federal government.

The $819 billion stimulus package passed by the U.S. House has a big carrot for Minnesota lawmakers worried about the rising costs of the state’s health care plans: nearly $2 billion in emergency aid that would flow directly into those programs.

But it also has a big stick: a provision barring states that accept the money from changing who is or isn’t eligible for health care benefits.


According to some estimates, Minnesota will be allocated $8.85 billion by the Economic Recovery and Reinvestment Act, 12.14% of that which is set aside to help the state balance the budget.

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