Arkansas GOP governor uses veto to save Medicaid program

The Republican governor vetoed a provision in the Medicaid budget that ordered a Dec. 31 end to the program, which uses federal funds to purchase private insurance for the poor.

Arkansas was the first state to win approval for its hybrid Medicaid program, created three years ago as an alternative to expanding Medicaid under President Barack Obama's health care law.

To get around opposition by some conservative Republicans, Hutchinson and legislative leaders devised an unusual parliamentary move that required supporters of the program to back a provision ending it.

Hutchinson and legislative leaders warned that ending the expanded coverage would've created a $100 million budget deficit and meant significant cuts for schools, prisons and a host of other state services.

The hybrid expansion sharply divided Republicans who control both chambers of the Legislature, with opponents of the program portraying it as an embrace of the Obama's federal health care law they want repealed.

Conservative groups have also signaled they'll likely target Republican lawmakers who backed the line-item veto maneuver in future GOP primaries.