Republican Gov. Matt Bevin's administration could eliminate Kentucky's expanded Medicaid program to avoid a $300 million shortfall.
Former Democratic Gov. Steve Beshear expanded Kentucky's Medicaid program in 2014 under former President Barack Obama's health care law. The expanded program now covers more than 400,000 people.
Bevin opposed the expansion because he said it cost too much money and did not make people healthier. In January, the federal government gave Kentucky permission to impose work requirements on some Medicaid recipients. But a federal judge blocked the program.
Cabinet for Health and Family Services Secretary Adam Meier told state lawmakers on Thursday the expanded Medicaid population is "optional" and could be eliminated to save money. He also said the state could cut benefits.