Administration grants state third Medicaid waiver

BOSTON—The Bush administration has given Massachusetts a third two-week extension on a critical Medicaid waiver that girds the state's new universal health care law.

The waiver allows Massachusetts to bypass rules about spending its federal Medicaid money so that the state can fund the health care law.

The current $385 million annual waiver was supposed to expire June 30. The state Department of Health and Human Services announced Monday that the new one will do so Aug. 11.

The Legislature is currently debating a bill that would have employers pick up an additional $130 million in costs under the health plan. The House and Senate are slated to wrap up business for the year at midnight Thursday.