MADISON, Wis. (AP) — The projected shortfall in Wisconsin's Medicaid programs serving the poor, elderly and disabled through plans like BadgerCare has improved by more than $300 million, Gov. Scott Walker's administration said in a letter released Tuesday.

Despite the good news, Department of Health Services Secretary Dennis Smith said in a letter to lawmakers dated Dec. 30 and made public Tuesday that the new estimate does not change plans to cut costs in various Medicaid programs that could result in about 65,000 poor adults and children losing coverage.

The cost-savings plan is awaiting approval by President Barack Obama's administration, and the news that the Medicaid shortfall isn't as bad as previously thought only increases pressure on Walker's administration to scale back the proposed reductions.

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