From the NYT:
A week after newly emboldened Republicans in the Texas Legislature floated a radical cost-saving proposal — opting out of the federal Medicaid program — health care experts, economists and think tanks are trying to determine just how serious they are, and if it would even be possible.
Update: More detail from the Texas Tribune. Republicans are arguing that cutting Medicaid is saves the state money, but others argue that it doesn't since the feds pick up most of the tab for Medicaid and if the policy is limited costs may be sent down to counties where property taxes and insurance premiums will pick up the tab.