State, federal healthcare budgets to feel effect of Katrina

The long-term financial impact of Hurricane Katrina looks serious for state budgets and will probably affect proposed cuts to Medicaid programs. The states directly affected by the storm are not the only ones hurting, reports. States across the southeast are feeling the financial burden of providing healthcare and other basic services to refugees from the devastated areas. Among those considered to be significantly impacted are Florida; Texas, which has accepted the most refugees; and Tennessee, which was experiencing a healthcare crisis long before it started accepting refugees from Mississippi and Alabama.

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PLUS: In light of Katrina, some want the recent $10 billion in Medicaid cuts rescinded. Story