States seek to shift some health costs to feds

(AP) — The governor of New York and other big states are in talks to get the federal government to take over health care costs for the elderly poor who get benefits through Medicare and Medicaid.

Gov. David Paterson and Lt. Gov. Richard Ravitch say they have spoken with officials in California and other big states to try to build a coalition.

The savings to New York alone would total the projected deficit for the next fiscal year of about $8 billion.

California's Medicaid director says his state is interested in the proposal as long as it reduces state costs.

Ravitch says the cost would be a fraction of the federal government's health care spending. He also says it would avert catastrophe that would ultimately require a federal bailout.