Governor says Medicaid costs likely to soar

An actuarial firm hired by Nebraska says that federal health care reform will increase the state's Medicaid costs by a total of $526 million to $766 million over the next decade.

The report was released Wednesday by Gov. Dave Heineman, who is opposed to the federal reforms. He called the projected costs staggering and an unfunded federal mandate. Heineman says raising taxes to pay for the expansion of Medicaid is an option.

State Sen. Jeremy Nordquist of Omaha questioned the report and cited another study that showed the state's additional costs would be much less.

Nordquist says the federal government is picking up most of the additional costs.