Governors hammer out proposal on Medicaid spending

There were signs of progress in the fight to trim Medicaid spending as the nation's governors met in Des Moines, Iowa, over the weekend to talk about healthcare and education at the National Governor's Association meeting. A key focus of the talks is reducing Medicaid spending, which this year surpassed education as the single largest item on state budgets. The Medicaid issue has been a contentious one in Washington in recent months, with lawmakers unable to agree on just what steps are needed to bring the program into line. On Sunday, the governors met with Senate Finance Committee Chairman Charles Grassley (R-Iowa) to discuss the package of reforms they want. Grassley told that he plans to back their proposal.

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