HHS secretary outlines Federal support for State's Medicaid program.

http://www.hhs.gov/news/press/2011pres/01/20110203c.html

The type of cost saving cited in the article is very doable and It will improve the efficiency of the medicaid programs. The suggests are as follows:

-Modifying benefits- by limit for example length of stay at hospital or optional treatment such as dental services.
- Managing Care for High-Cost Enrollees More Effectively- adopting a medical home model for chronically ill children
-Purchasing Drugs More Efficiently- Get accurate information regarding drug pricing when setting State's pharmacy pricing.
- Assuring Program Integrity- police the system to curb fraud.