Seeking Middle Ground Between the White House and the Statehouse

Governors from both parties question President Bush's plan to cut $40 billion from the Medicaid budget. The cuts in Washington may have to be made up at statehouses all around the country. The costs are soaring -- pushed on by health care inflation and by people living longer and counting on Medicaid for health care. Governors have met with the President and hope to reach some kind of compromise.

Medicaid will cover 53 million Americans this year and cost $329 billion. That's 40% more than it cost five years ago. (CNN)