New York and Minnesota officials have settled a lawsuit against the Trump administration over its decision to slash federal funding for the states’ health plan programs that cover certain low-income people.

A federal judge in the U.S. District Court for the Southern District of New York dismissed the case after the HHS agreed to pay $151.9 million to New York and $17.3 million to Minnesota by May 14 to fund the states’ Basic Health Programs, which together cover 800,000 people.

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Republican Sen. John Kennedy (La.) on Thursday said Medicaid work requirements should be mandatory for states, and the Department of Health and Human Services (HHS) should take the lead to make it happen.

During a hearing on the HHS budget, Kennedy said many Medicaid beneficiaries who aren’t working “would like to know the dignity of work” noting he would like to see HHS work with Congress to put together a program that would institute a mandatory requirement that Medicaid beneficiaries work 20 hours a week.

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President Trump on Friday outlined his long-awaited plan to lower drug prices, stopping short of a full-scale assault on the pharmaceutical industry while floating several ideas that could give companies heartburn.

Trump stepped back from the some of the sweeping proposals he offered on the campaign trail, like having Medicare negotiate drug prices, but still leveled pointed criticism at the industry.

“The drug lobby is making an absolute fortune at the expense of American consumers,” Trump said in remarks from the White House Rose Garden. “We are putting American patients first.”

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Republicans have often won support in recent elections by promising to repeal the Affordable Care Act. This year, Democrats hope to turn the tables by pushing the opposite goal—not just keeping the health law, but expanding government’s role in health care.

The tactic, which carries political risk as well as opportunity, is playing out in places such as Minnesota, a state won narrowly by Hillary Clinton in 2016 that is facing a governor’s race, two Senate contests and five close House races. Democrats need to gain 23 House seats to retake the chamber, so the state is critical.

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