"The deal [Oregon Governor John Kitzhaber] struck was this: The Obama administration would give the state $1.9 billion over five years, enough to patch the [state's $2 billion Medicaid] budget hole. The catch: To secure that, Oregon's Medicaid program must grow at a rate that is 2 percent slower than the rest of the country, ultimately generating $11 billion savings over the next decade. If it fails, those federal dollars disappear. Oregon is pursuing the Holy Grail in health-care policy: slower cost growth. If it succeeds, it could set a course for the rest of the country at a pivotal moment for the Affordable Care Act."

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