Gov. wants Medicaid overhaul approved

Gov. Don Carcieri is defending the massive overhaul of the state's Medicaid system that's proposed in a landmark agreement reached with the federal government last month.

The deal would set a $12 billion cap on Medicaid spending over five years. In return for saving the federal government money, the state could use Medicaid funding in new ways.

Carcieri told the state's House Finance Committee today that the goal of the new program would be to give the sick and elderly more choices in their health care.

For instance, he said people would have more flexibility to be cared for at home, rather than in nursing homes. He pledged that services would remain intact. But critics worry that services could be cut and that the state lacks the necessary infrastructure to implement the program.