HCR Update from Mark Sanna: Governors of both parties have proposed cuts in healthcare, one of the largest single expenses for states, as they struggle to balance their budgets. Many, including some Democrats, want the Obama administration to loosen a requirement in the new healthcare law that prevents them from dropping large numbers of low-income people from Medicaid. About 53 million poor children and adults are covered by the program, which is funded jointly by the state and federal governments.