The Medicare bill just signed into law by President Bush will help states cover prescription drug costs for poor senior citizens, but states will have to give back to the federal government a large chunk of the savings. Under the bill, the federal government will pay the prescription drug tab for nearly 6 million Americans who qualify for both Medicare and Medicaid. The overhaul of Medicare, the nations 38-year-old health insurance program for those over 65 years old, will provide a prescription drug benefit to all seniors for the first time. more

Hawaii once enjoyed a reputation as the nations health care leader. It was the only state that required employers to provide health benefits, and its uninsured rate was a mere 5 percent. But today, the island state is struggling on the health coverage front. The uninsured rate has doubled and Hawaii now trails 11 other states. What went wrong? more

Calling it their top legislative priority, governors at the National Governors Associations (NGA) annual summer meeting reiterated a plea for the federal government pick up the costly prescription drug tab for more than 6 million poor, elderly Americans. more

The one-time $10 billion boost from the federal government to state Medicaid programs might avoid cuts for now, but the money is only a stopgap measure that falls far short of providing a long-term solution to Medicaids soaring costs, state officials, budget directors and policy analysts said. more

President Bush's proposal to reform Medicaid, a state-federal program that provides health coverage for 50 million low-income Americans, drew mixed reviews from governors, state budget directors and policy analysts at a Harvard University conference last week. more