Split in Republican Party over Medicaid:

The Bush administration has declared war with the states with its Medicaid regulation, bringing it into direct conflict with Republican governors of several states:

Gov. Arnold Schwarzenegger of California, a Republican, said, “The administration is attempting to reverse decades of federal Medicaid policy through the regulatory process,” less than a year after “Congress rejected these misguided cuts.”

In Missouri, Gov. Matt Blunt, a Republican, said the change “could mean a loss of more than $84.9 million” for his state. That, he said, would “jeopardize the continuity of care for Medicaid recipients” and set back efforts to improve care in nursing homes.

Gov. M. Jodi Rell of Connecticut, a Republican, protested the White House plan in a letter to Mr. Bush. She said the effects would be “disastrous” in states like Connecticut, which relies on fees collected from nursing homes to help pay its share of Medicaid costs.

(New York Times, 8-13-06)