The Obama administration on Friday allowed Arizona to charge some Medicaid recipients co-pays and premiums but nixed more controversial provisions that would have required them to get a job and be phased out of the system after five years. Gov. Doug Ducey has been pushing to reform the Medicaid system since August 2015, saying it will better utilize services, cut state costs and prepare some adults to transition into private coverage.
His reforms required approval from the federal government, and the administration responded Friday with a letter outlining what it endorsed and what it rejected. Adults who earn more than the federal poverty level will now be required to pay a monthly premium of 2 percent of their household income into a health savings account or $25, whichever is less.
That account could only be tapped for non-covered services like vision care, dental work, gym memberships and weight-loss programs. They can defer payments …
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