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A federal court judge gave the Obama administration until Tuesday to say whether it will accept Gov. Rick Scott's request for mediation in a dispute over billions of dollars in federal health care funds. The Republican governor is suing the federal government for withholding hospital funds because Florida is not expanding Medicaid. (Kennedy, 6/8)

Scott sued the federal agency in April, accusing it of trying to coerce Florida into expanding Medicaid by threatening to cut the Low Income Pool fund used to reimburse hospitals that provide uncompensated care for the uninsured. A month later, the agency confirmed that the state would receive only $1 billion of the $2.3 billion it received this year in federal LIP funds. Scott argues that the cutbacks were intended “to coerce the state into expanding Medicaid or to punish the state for failing ultimately to do so.” (Klas, 6/8)

It has been a head-spinning time in Tallahassee. Lawmakers adjourned the 2015 legislative session last month without finishing a state budget, then returned last week for a special session and finally reached some consensus over the weekend. At issue: how to compensate hospitals that provide health care for the state's low-income residents. For those who haven't followed every twist and turn, here's a look at the developments so far and where lawmakers stand on the budget. (McGrory, 6/8)

Arkansas will not, for the time being, impose cost-sharing for Medicaid expansion beneficiaries below the federal poverty level. ... Those making between 50% and 100% of the federal poverty level ($11,925 to $23,850 for a family of four) were expected to pay $5 a month. Those between 100% to 138% were to pay between $10 to $25, depending on income. ... Initially, the plan was to conduct a six-month outreach campaign in Arkansas to enrollees under the poverty level in the private option, and then begin to start collections of the $5 contributions starting in July. Newly elected Republican Gov. Asa Hutchinson quietly altered the plan months ago, allowing cost-sharing for people above poverty to move forward, but canceling plans to impose it on the poorer enrollees. (Dickson, 6/8)

[Kim] Perez is trying to squeeze her family’s budget because she and her fiancé could be among an estimated 23,700 low-income parents slated to lose Medicaid coverage under the state budget legislators passed last week. The controversial cutback comes less than two years after a much-touted expansion of coverage under the federal health law. ... Gov. Dannel P. Malloy first proposed the cut, and administration officials have argued that, because of the Affordable Care Act, there’s now an alternative for those parents: private insurance sold through Connecticut’s health insurance exchange. (Levin Becker, 6/9)

Colorado’s health exchange board today approved a final budget for the next fiscal year that requires aggressive sales growth and higher fees, but still doesn’t bring in enough cash. The next open enrollment begins in November and Connect for Health Colorado managers will have to dramatically boost sales of private health insurance with fewer health guides. (Kerwin McCrimmon, 6/8)

The state health insurance exchange bumped up its fee levels for next year as expected on Monday, but the change won't add enough revenue to cover costs during fiscal 2016. Connect for Health Colorado's $53.7 million budget, approved without dissent Monday, will generate a cash operating deficit of $4.6 million and a total deficit, after IT and other capital investment, of $13.3 million. (Draper, 6/8)