Ariz. restores funding for Medicaid, children's insurance program

Arizona Gov. Jan Brewer has signed a bill to restore funding to the state's Medicaid and children's health insurance programs.

State lawmakers in March agreed to eliminate the children's health insurance program, KidsCare, in June and sharply reduce Medicaid rolls in 2011, to help close a budget deficit. But the federal health reform law requires states to maintain programs at existing levels to qualify for federal matching dollars. The cuts would have cost Arizona more than $7 billion in federal funds.

The bill signed by Brewer allows the state to continue to accept federal dollars for these programs. KidsCare covers about 38,000 low-income children.

Arizona froze enrollment to KidsCare in January. About 19,000 children are on the waitlist.