HHS vows better coordination to help states keep Medicaid costs under control

Gov. Christine Gregoire (D-Wash.) said access to Medicare data is "critical" to her state.

"The data will help us design a much better system that is centered around these individuals as patients, that's integrated and gives them … the right care at the right time."

The announcement comes as House Republicans have adopted a budget blueprint that would slash federal Medicaid spending by $750 billion over 10 years and replace it with block grants for states to manage as they want.

"The answer is not to block-grant Medicaid and hand these problems over to states to deal with on their own," Sebelius said. "In the long-term, the only way to slow Medicaid spending is to find ways to deliver care more effectively, especially for those individuals with the greatest health needs."