States Rein In Health Costs: "In Tennessee, Gov. Phil Bredesen plans to end coverage for more than 320,000 adults, many of them elderly. In California, Gov. Arnold Schwarzenegger wants to shift more Medicaid recipients into managed care and require some to pay monthly premiums.

Minnesota may stop insuring 27,000 college students and adults without children. Washington state may require senior citizens to pay $3 for each prescription that Medicaid used to provide for free.

South Carolina Gov. Mark Sanford and Florida Gov. Jeb Bush have proposed privatizing Medicaid. Bush wants to give recipients vouchers so they can shop around for their own insurance plans. Sanford wants to set up Medicaid bank accounts; the state would deposit a fixed sum of money for each patient to spend on medical expenses.

In Missouri, where nearly one in five residents is enrolled in Medicaid, Gov. Matt Blunt is poised to sign the most drastic overhaul of all: a bill that would eliminate the program entirely in three years."