HARRISBURG, Pa. - The administration of Gov. Tom Corbett says an announcement could be made soon on the Republican's plan to use billions of federal Medicaid expansion dollars to subsidize private health insurance policies.

A state Department of Public Welfare official said Wednesday that negotiations with the federal government are in the final stages.

A U.S. Department of Health and Human Services spokeswoman didn't immediately respond to a request for comment.

Corbett submitted the 124-page plan to the federal government in February, and negotiations began in April.

Corbett has sought changes to the traditional Medicaid coverage for the private insurance plans that would funded by expansion dollars under the 2010 federal health care law.

Opposition from the Obama administration prompted him to ease one condition: a work-search requirement for able-bodied, working-age Medicaid enrollees.