What was meant to be $200 million in additional Medicaid assistance in the wake of Hurricane Katrina has since revealed a $4.3 billion-error in the state’s favor. President Obama made an exception for Lousiana’s Medicaid adjustment before the health care bill went to vote in 2010. In November 2011, the Centers for Medicare and Medicaid Services came up with $4.3 billion because the law didn’t phase out the adjustment after two years, as it was intended, but rather increased the federal subsidy in out-years. Since then, a section of the Middle Class Tax Relief and Job Creation Act of 2012 eliminated funding for Lousiana’s Medicaid supplement, but allowed the state to keep $1.6 billion.

Read the story.