June 2, 2011 11:59AM 

# From This Morning’s Health Care News 

By [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon) 

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Indiana [learns](http://news.yahoo.com/s/ap/20110601/ap_on_go_ca_st_pe/us_medicaid_funding_indiana;_ylt=AtqYtUcbeyNwIGHdRZw8YY9p24cA;_ylu=X3oDMTMxOGRzazdkBGFzc2V0A2FwLzIwMTEwNjAxL3VzX21lZGljYWlkX2Z1bmRpbmdfaW5kaWFuYQRwb3MDNwRzZWMDeW5fcGFnaW5hdGVfc3VtbWFyeV9saXN0BHNsawNhcG5ld3NicmVha2g-) just how much flexibility states have when administering federal health care programs.

A Medicare pilot program bearing a striking resemblance to [ObamaCare](https://www.cato.org/bad-medicine/)’s “accountable care organization” program [turns out](http://www.washingtonpost.com/national/experiment-to-lower-medicare-costs-did-not-save-much-money/2011/05/27/AG9wSnGH_story.html) to be a flop.

Newsflash: Medicare’s Soviet-style price controls get the prices [wrong](http://www.nytimes.com/2011/06/02/us/02health.html).

##### Related Tags 

[General](https://www.cato.org/general), [Government and Politics](https://www.cato.org/government-politics), [Health Care](https://www.cato.org/health-care) 

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