Los Angeles Times, February 4, 2011

Facing a brewing revolt among states wrestling with massive budget shortfalls and tattering healthcare safety nets, the Obama administration is intensifying a drive to help state leaders find ways to wring savings from their Medicaid programs. Thursday, Health and Human Services Secretary Kathleen Sebelius sent a letter to the nation's 50 governors suggesting a range of cuts they can make to Medicaid, including dropping some people from the program. "I know you are struggling to balance your budget while still providing critical healthcare services to those who need it most," Sebelius told governors in the letter. "In light of difficult budget circumstances, we are stepping up our efforts to help you identify cost drivers in the Medicaid program and provide you with new tools and resources to achieve short-term savings and longer term sustainability."
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