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The decision, citing trump's reasoning that the military cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail. >> we need to spend every defense dollar where we need to. and this has been a real concern. >> reporter: a 2016 ram study concluded gender transition and health care coverage for transgender military members would increase the defense department's health care cost by as much as $8.4 million, a tiny fraction of the pentagon's overall $49.3 billion health care expenditures. >> this isn't just about health care. this according...

Gender identity. but some lawmakers agree with the decision, citing trump's reasoning that the military cannot be burdened with the tremendous medical costs and disruption that transgender in the military would entail. >> we need to spend every defense dollar where we need to. and this has been a real concern. >> reporter: a 2016 ram study concluded transgender health care coverage for transgender military members would increase the defense department's health care costs by as much as $8.4 million. a tiny fraction of the pentagon's overall $49.3 billion health care expenditures. >> this isn't ...

Republican governorings are doing it, too. the reason they're doing it, it's free money. particularly if they come from states with a lot of retirees like rick scott in florida or jan brewer in arizona. what a lot of people don't understand, much of medicaid goes for seniors. to keep them from moving in with their children in the rec room or on the couch. it gives them money for assisted living. >> nursing homes. >> nursing homes of all kinds. the point here is that she can't deal with her budget crisis until she gets some money for her medicaid shortfall and she can't do that without eating c...

It too. the reason they're doing it, it's free money. particularly if they come from states with a lot of retirees like rick scott in florida or jan brewer in arizona. what a lot of people don't understand, much of medicaid goes for seniors. to keep them from moving in with their children in the rec room or on the couch. it gives them money for assisted living. >> nursing homes. >> nursing homes of all kinds. the point here is that she can't deal with her budget crisis until she gets some money for her medicaid shortfall and she can't do that without eating crow on obama-care. >> here are the ...

To keep them from moving in with their children in the rec room or on the couch. it gives them money for assisted living. >> nursing homes. >> nursing homes of all kinds. the point here is that she can't deal with her budget crisis until she gets some money for her medicaid shortfall and she can't do that without eating crow on obama-care. >> here are the dollars and cents from the ram study. the loss in federal dollars for those states opting out, $8.4 billion, increased state spending of a billion dollars. my question to you. you have republican governors like jan brewer and rick scott in fl...