RALEIGH, N.C. (AP) — Republicans in control of North Carolina's General Assembly introduced legislation Wednesday that would block the expansion of Medicaid under the health care overhaul and leave it to the federal government to build the state's online marketplace for health insurance.

Under the health overhaul championed by President Barack Obama, the federal government offered to pay the full cost for expanding Medicaid coverage the first three years and 90 percent thereafter. About 648,000 state residents who currently lack insurance would be eligible for Medicaid coverage if North Carolina expanded the program to include those making up to 138 percent of the federal poverty line.

But lawmakers say they are wary after spiraling Medicaid costs have poked multimillion-dollar holes in the state budget in years past.

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