The National Governors' Association, concerned about the slowing economy and imminent state budget cuts, is urging President Bush and Congress to overhaul Medicaid, which is threatening to consume the states' revenues. Fifty-two governors arrived in Washington on Saturday, February 24, for four days of meetings with the President, cabinet officials, and members of Congress regarding various issues.

Topping the governors' list is education, but the Medicaid overhaul is a close second priority. Under their plan, states would be allowed to make adjustments in benefits to trim costs and to extend coverage to more beneficiaries. Though Bush is not likely to act this year on Medicaid reform, he did announce a task force to examine the governors' concerns.

The governors are also asking Bush to revoke rules issued by former President Clinton in the final hours of his administration. These rules granted new rights to Medicaid beneficiaries while increasing costs and administrative burdens on the states. HHS Secretary Tommy Thompson has delayed implementation of the rules until June 19.