According to the Washington Post, the failing economy is having a negative effect on how some states are dealing with Medicaid.

Lower tax revenue and higher unemployment rates are forcing some states — the article specifies Maryland, Virginia and the District of Columbia — to lower payments to hospitals and nursing homes, eliminate coverage for some treatments, and force some recipients out of the insurance program completely.

The article further states that President-elect Obama might be receptive to boosting Medicaid as a way to help spur the economy.