Sebelius: States Can Opt Out of Medicaid Expansion, But Can't Tighten Medicaid Eligibillity

Health and Human Services Secretary Kathleen Sebelius is reminding state governors that although they can choose to opt out of the Affordable Care Act's Medicaid expansion, they still can't tighten current Medicaid eligibility requirements.

Sebelius added that low-income residents in states that elect not to participate in Medicaid expansion will not face federal penalties for not having health insurance. Instead, they will receive a "hardship" waiver from the ACA's individual mandate provision. 

To read Sebelius's letter to state governors, click here.