RICHMOND, Va. (AP) — Federal officials approved a four-year Virginia cost-saving experiment intended to simplify and consolidate health care coverage for about 78,000 Virginians who are eligible for both Medicaid and Medicare, a major change Gov. Bob McDonnell set as a condition for expanding Medicaid.

Virginia got the go-ahead Tuesday for McDonnell’s new Commonwealth Coordinated Care program, which is estimated to save the state $11 million in its first six months after it begins on Jan. 1. In fiscal year 2015, beginning July 1, 2014, officials estimate it will cut state costs by $22.6 million.