BOISE -- Gov. C.L. "Butch" Otter concedes he misspoke last week by suggesting Idaho could lose up to $300 million in Medicaid funding if it doesn't adopt an insurance exchange required by the federal health care overhaul.
He now says if lawmakers opt against establishing a state-run exchange with $20.3 million in federal help, then the federal government would step in -- all without Medicaid money at risk.
Otter, who made the initial comment to reporters last week, says he meant to say Medicaid funding is at risk only if Idaho fails by October 2013 to complete a separate system to process Medicaid applicants.
That system will help determine whether people are eligible for Medicaid, or if they qualify for subsidized insurance through an exchange.
And Idaho plans to complete that system.