RALEIGH, N.C. (AP) -- Gov. Pat McCrory's administration has rolled out a scaled-back model to Medicaid reform in North Carolina after an effort unveiled several months ago fell flat.

The governor has said repeatedly the health insurance program for mostly poor children, older adults and the disabled is broken. He says Medicaid's hemorrhaging of hundreds of millions of dollars annually is preventing spending on other initiatives such as teacher pay raises.

The first Medicaid overhaul proposal would have had up to four statewide managed-care companies or other entities deliver treatment. Medicaid would pay a set price to an organization for covering each patient they served. Many lawmakers and interest groups didn't like it. The state Medicaid office presented a more regional model last week.

The legislature is likely to have the final say.

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