WASHINGTON -- The Bush administration said yesterday it will grant states, on a case-by-case basis, a six-month delay of the Jan. 1, 1992, effective date for rules disallowing certain types of state funds that have been eligible for federal matching dollars under the Medicaid program.

"We believe this grace period will be sufficient to enable any state to transition out of these arrangements and to put in place alternate means of financing its Medicaid program," the Health Care Financing Administration said in its announcement.

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