An interesting, must-read white paper by Greg Anrig was published this month, "The Next Priority for Health Care: Federalize Medicaid." Here's an excerpt:

Converting Medicaid into a national program like the superior Medicare model, which covers virtually all of America's elderly through rules and payment schemes that are consistent throughout the country, would relieve state governments -- even the parsimonious ones suing the feds -- of what has genuinely become an unmanageable financial burden. Soaring Medicaid costs, driven by rising enrollments and many of the same forces escalating inflation throughout the health care sector, have ensnared most populous states in a chronic budget squeeze that relentlessly forces cuts in education, social services, and other essential state-level functions. Even after the effects of the severe recession abate, forecasts show that most states can expect to remain austere indefinitely as they comply with balanced budget requirements that don't apply at the federal level.

And he answers the naysayers. Truly worth your time to read.