Measures to control the growth in expenditures by Medicaid and State Children’s Health Insurance Programs (SCHIP) have become a common feature of state government policy. A recent survey of state Medicaid program directors revealed that every state implemented at least one new Medicaid cost containment measure in fiscal year 2005 (Smith, et al., 2005). The most prevalent measures involved freezing provider payment rates or taking actions to control prescription drug costs. Other measures used to control costs include new or higher copayments and premium increases.