BREYER, Circuit Judge.
I.
Background
The federal Medicaid program provides money for the states to pay for medical care for needy and disabled people. See Title XIX of the Social Security Act, 42 U.S.C. § 1396. A state receiving federal Medicaid funds must administer them according to a "state plan" that meets federal standards. 42 U.S.C. § 1396a. Under the plan, the state will reimburse nursing homes and other Medicaid facilities...
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