While the federal government has approved the Corbett administration’s proposal to expand Medicaid eligibility in Pennsylvania and serve the newly eligible through private insurance plans, it did not rule on a key component of the administration’s Healthy Pennsylvania proposal:  reducing benefits for some Medicaid recipients.
Instead, any changes in the state’s Medicaid benefits must still be negotiated with the federal government and remain subject to federal approval.
For a closer look at the state’s Medicaid expansion plan and its implications, see this report in the “State House Sound Bites” section of the web site of public radio station WITF.