Health policy for low-income people: states' responses to new challenges.

The past five years have given states new opportunities in health policy for low-income people, with many changes increasing states' flexibility. However, new pressures on state policy also have arisen from a variety of factors, most recently from the economic downturn that has reduced revenues and increased demand for spending. This paper analyzes recent changes in health policy in the thirteen states that are the core of the Urban Institute's Assessing the New Federalism project, focusing on state fiscal conditions, health care coverage, acute care, and long-term care. Implications for the future are discussed.