NEW YORK (CNNMoney) -- The governor of Arizona has proposed a novel way of helping to pay burgeoning Medicaid costs -- imposing a fee on smokers, diabetics and obese people who receive the state aid.
The proposal from Gov. Jan Brewer, which would take effect in October, imposes "penalty and incentive strategies" on Medicaid members "to take responsibility for their own health care," according to a statement from the governor's office.
The "strategies" include an annual fee of $50 on childless adults who smoke. Medicaid recipients who are obese or diabetic would face similar penalties if they don't get into shape.
"Childless adults who are obese and/or suffer from a chronic disease, such as diabetes, will need to work with their primary care physician to develop a care plan," the document said.
Matthew Benson, spokesman for the governor, said this proposal is part of a wider plan to save $510 million for the state. He said the proposal has been submitted to the federal government for review, a months-long process.
Benson said parts of the plan will also require approval from state legislators.
Many states have been hard hit covering their Medicaid costs as federal funding has dried up. The federal government is matching every dollar of state funding for Medicaid with $1.61 in federal funding. That's down from $2.68 in federal funding in 2010.
Coke debuted limited edition "proud to be an American" cans in collaboration with the USO. More
The FBI has opened a national security investigation into the hacking of Bangladesh's central bank amid signs that the hack might have come from North Korea. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The gender pay gap in the labor market is pretty well documented. But the gender gap also exists in the housing market. More