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States Streamline Medicaid Using U.S. Funds to Cut Costs

A stipulation in the 2010 health-care law that bans U.S. states from dropping Medicaid patients has forced them to be more efficient in managing the program to save money, according to a report today.

While Medicaid, the joint U.S.-state health plan for low-income people, is among the biggest expenses for states in a flagging economy, the law prevents them from dropping members or tightening eligibility. A Kaiser Family Foundation survey found that 29 states have streamlined their programs, with most using U.S. incentives to add new technology.