Bush Wants To Work With Nation's Governors

Bush says he recognizes governors' concern over Medicaid

President Bush says he wants to work with the nation's governors to resolve the growing Medicaid problem.

Bush told the governors that he recognizes the systems "needs to be reformed." The president has called for 40 billion dollars in cuts to the program. Much of that would come from stopping states from using certain accounting techniques. The administration contends the states are exploiting loopholes that cheat taxpayers. That has drawn fire from governors in both parties. The program's caseload and costs have soared.

Demographic changes that are driving more and more elderly into the program, which cares for two-thirds of the nation's nursing home residents.

In addition, the rolls grow when private employers drop health care for employees, who turn to the state.