Federal Government has allowed Medicaid cuts to the state of Wisconsin and according to rumors, preliminary approval to the Medicaid cuts could result in approx 65,000 poor adults and children leaving the health insurance programs.

Moreover, a letter has also been sent regarding the issue by the director of the federal Center for Medicaid and Children's Health Insurance Program Services, on Friday, seeking some more time to thoroughly analyze the state's plans and enabling them to make the final determination as soon as possible.

Regarding the sensitivity of the issue, Gov. Scott Walker's administration has also advised the concerned authorities to take their final decision and approve the plan by Dec. 31 because if the decision did not come before the time, approx 53,000 people could be forced off BadgerCare Plus next month.

When asked, a spokeswoman for the state Department of Health Services said that the department is reviewing the letter and is discussing about the next steps to be followed. Federal Government has stated it clear in its announcement of Friday that the awaited approval for Medicaid changes most probably won't meet Wisconsin's Dec. 31 deadline.

The state has however requested again the authorities for a prompt decision saying that their main aim is to avoid cutting coverage for 53,000 adults.

Mr. Dennis Smith, Secretary of the state Department of Health Services, wrote positive to the federal Centers for Medicare and Medicaid Services after receiving a letter on Friday from the agency. He clearly mentioned in his note that they are still favoring the decision and believe that they have enough time to reach an agreement.

The letter received from the federal agency on Friday said, "it is unlikely we will be able to meet the State's requested date of December 31, 2011, for all of these proposed sweeping changes to its programs".