This Kaiser Family Foundation brief examines the options for restructuring the federal-state financing relationship for individuals who are eligible for both Medicare and Medicaid in order to control health spending growth.

From the report:

Medicaid currently fills in the gaps in Medicare’s benefit package for 8.8 million enrollees with limited income and resources (dual eligibles). This financing role has important implications for state budgets, and consolidating aspects of this financing at one level of government could create new opportunities for better care management and coordination for dual eligibles. As federal policymakers in the new administration and Congress develop proposals for fiscal stimulus and health reform, it is instructive to consider changes to Medicaid’s current financing role for low-income Medicare enrollees.

Full Report: Rethinking Medicaid's Financing Role for Medicare Enrollees

Kaiser Family Foundation. (2009). Rethinking Medicaid's financing role for Medicare enrollees. Holahan, John; Miller, Dawn M. & Rousseau, David.