CHARLESTON, W.Va. — West Virginia will expand Medicaid as called for by the federal health care overhaul.Gov. Earl Ray Tomblin said Thursday the…

West Virginia insurance officials told lawmakers Tuesday that partnering with the federal government is the state's best option for a new health coverage marketplace, but also cautioned that success is far from certain.

Much of the cuts are based on the poor performance of the state's $13 billion pension investments, which earned a 2.5 percent return during the budget year.

The bulk of the cuts reflect a revised estimate of how much the state must put toward the main pension fund for teachers.

West Virginia is already reaping benefits from recent efforts to rein in public retiree health benefit costs, officials say. A Wall Street credit rating agency appears ready to praise the state's handling of its last major liability.

The 214,000 West Virginians covered by the Public Employees Insurance Agency can expect some new or higher health care copayments while retired enrollees will see a limit to the subsidy that helps them pay premiums, which will rise 9 percent, under provisions approved Tuesday by the agency's finance board.