• PIERRE, S.D. (AP) -- Gov. Dennis Daugaard said Thursday he still hopes federal officials will eventually decide to let the state expand its Medicaid program in a way that would provide medical services to fewer poor people than envisioned in the federal health overhaul.
• Federal officials indicated in a phone call this week that they are not willing to approve South Dakota's request for a partial expansion of Medicaid, but Daugaard said federal officials have repeatedly relaxed requirements of the new health care law.
• "So I think there is a potential down the road that the federal officials will take a look at the proposal we've put forth and support it. We'll see," Daugaard said at his weekly press conference.
• The federal health overhaul gives states the option of expanding Medicaid to cover people earning up to 138 percent of the federal poverty level. Daugaard and the South Dakota Legislature's Republican majority want to expand eligibility only up to 100 percent of the poverty level because those above that mark can buy subsidized private insurance through the health care law.
• Daugaard sent a letter in late January asking U.S. Health and Human Services Secretary Kathleen Sebelius if she would consider such a partial expansion of Medicaid. Daugaard noted that this week's phone call was not a formal rejection of his request, but he said it's unlikely any move to expand Medicaid will be approved before the main run of this year's legislative session ends March 14.
• Senate Majority Leader Tim Rave, R-Baltic, said this week's phone call among federal officials, state lawmakers and members of the governor's staff means nothing will happen during this year's legislative session.
• However, Rave said he believes it's possible federal officials will decide to grant the state's request for a waiver in the next few months. If that happens, a special legislative session could be held to approve changes in the state budget

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