U.S. Rejects Oregon Bid To Extend Medicaid

WASHINGTON The Bush administration on Monday rejected Oregon'splan to extend Medicaid health coverage to more people by rationingservices for the poor, saying it would violate a new federal lawprotecting the disabled.

However, Health and Human Services Secretary Louis W. Sullivanindicated the administration wanted to approve something similar towhat Oregon had proposed and invited the state to submit the planagain once it has worked out the legal wrinkles.

"I urge Oregon to submit a revised application which addressesthese concerns, and I look forward to approving such ademonstration," Sullivan said in a letter to Oregon Gov. BarbaraRoberts (D).

The …