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Across the country, governors and state lawmakers have circled “2017” on their calendars. This is the first year that the enhanced federal funding for Obamacare’s Medicaid expansion starts to fade away and states will have to scramble to find new funds to pick up their share of the expense. As it turns out, “free money” comes at a cost.

But a new report from the Foundation for Government Accountability (FGA) reveals that the fiscal pain soon coming to states may be even worse than anticipated.

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