Opinion by Judge KLEINFELD; Concurrence by Judge MOSKOWITZ.
KLEINFELD, Circuit Judge.
We deal with what federal Medicaid restrictions apply to a state program providing medical benefits to persons who are not eligible for Medicaid.
States do not have to participate in the federal Medicaid program, but if they do, the state plans must generally conform to federal Medicaid regulations. In return for their participation and conformity with federal requirements...
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