For the past several months, just about everyone in Washington, in both political parties, has talked about reducing the deficit. They all seem to understand that it’s what the American people want. And if it’s something they actually want to deliver, they have an opportunity to do so right now, to the tune of hundreds of billions of dollars. They need to “block grant” Medicaid.

President Obama and his administration claim his health care law would create deficit savings of $114 billion over ten years.  It was a key point of their argument during the health care debate, emphasized by House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid.