Medicaid -- many states' top spending item -- dominated the agenda of the National Governors Association meeting in Iowa this weekend.
Governors were scheduled to vote on the association's Medicaid reform proposal, which, among other changes, seeks greater flexibility for states to alter their Medicaid programs without prior federal approval and greater cost-sharing by beneficiaries. The association's proposal, developed by a panel of governors, was released in June.
Meanwhile, more than a dozen governors are considering taking the federal government to court over dual-eligibility coverage, the Associated Press reported. Dual eligibles qualify for both Medicaid and Medicare.
While Medicare is taking over responsibility for the healthcare of dual eligibles, states will be required to pay the majority of dual eligibles' drug costs under the new Medicare prescription drug benefit.
A message left for the governors' association was not returned by deadline.