WASHINGTON -- State governments, already financially strapped, may lose more than $5 billion in 1992 as a result of the federal government's attempt to close what it calls a loophole in the Medicaid program, a National Governors Association official said yesterday.

"This will have a greater financial impact on states' fiscal situation than any single thing Washington has done recently," said Jim Martin, director of the office of state-federal affairs for the governors group. He was referring to a rule issued by the Health Care Financing Administration this week that will disallow certain types of state funds that had been eligible for federal matching funds under the Medicaid program.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.