The House Republican Obamacare replacement bill has a new problem: It's lost the confidence of four key GOP governors. In a letter to House Speaker Paul Ryan and Senate Majority Leader Mitch McConnell, the governors — John Kasich of Ohio, Rick Snyder of Michigan, Brian Sandoval of Nevada, and Asa Hutchinson of Arkansas — said the bill doesn't give states enough flexibility or enough money:

What they want: They included their own Medicaid proposal, which has three important differences from the House bill:

• It would give states a choice between switching to per-capita caps or block grants, not just per-capita caps.
• States could also keep the current structure of Medicaid, but with less money.
• They'd get more flexibility to run their programs differently so they can manage with less federal funds.

Why it matters: Republicans are already divided on how to end Obamacare's Medicaid expansion, and the opposition from these high-profile governors isn't going to help. All four states expanded Medicaid (Michigan and Arkansas did it in revised form).