On the last day of the National Governor's Association conference, the states' chief executives tackled a tough issue -- Medicaid. The program originally put in place to help poor women and children has ballooned to serve the needs of a growing population of elderly and disabled people. Governors were taken by surprise earlier this week when they heard what they took as a threat from the white House – come up with a plan to reform Medicaid in a matter of weeks, or face a cut of 60 billion dollars.
But after meeting with Secretary of Health and Human Services Mike Leavitt, the governors see more room for negotiation. NHPR correspondent Julie Donnelly reports from Washington.