Arizona Gov. Jan Brewer plans to push for an expansion of the state's Medicaid program under the federal health care law.
Brewer has opposed the federal health care law known as the Affordable Care Act, citing worries over a potential overreliance on federal funding.
But Brewer told lawmakers in her annual State of the State address on Monday that virtually all of the expansion would be funded by the federal government.
She said increase would also include a "circuit-breaker" that would automatically roll back enrollment if federal reimbursement rates decrease.
Brewer's decision is being closely watched by other Republican governors who are weighing a similar decision.
Seventeen states and Washington D.C. have now signed onto the expansion, and nine have opted out. The rest are weighing the decision.
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