these countries been frozen and the prospect for that change, particularly if it is carried out without violence as has been the case in several of these countries and gives rise to the democratic government is again first of all for the peoples of the region, but ultimately again for everybody. >> i think i share the optimism. it's obviously a very difficult time as i was in seven different countries last week, i was reminded in the end is important to discriminate between countries. i would prefer instance by rain and libya in the same category at all. in fact, the king and the crown

prince immediately step back for that, called for a dialogue. those are very positive steps and they are now trying to work their way through to make that a lot of work and i think they recognize that the requirement is. one of the reasons i share the optimism is in each country it is clearly about the people of that country. it has not been about the relationship, the external relationships. it's been about change inside those countries, which are so important. certainly in the long run all of us are going to have to adjust to what these relationships mean, but i know on balance i'm optimistic that there is a chance for stability and opportunity that just didn't exist as recently as four weeks ago. and i would just like to emphasize also the secretary said about al qaeda. i think it's a fundamental,

almost none to defeat, but certainly it is a less than or msh that completely undermines the strategy of al qaeda. >> admiral mullen, can you talk a little bit about as a result of their trip last week, what adjustments you feel the u.s. military needs to be making right now and needs to be working on because of the changes and events in terms of the u.s. oteri relationship with any of these countries? secretary gates, a baker advice on that as well. >> i'm not sure about some significant adjustments right away. i think it's really important to stay engaged with them and as i said listen to what their concerns are. they actually want us to stay with them milks the mill. i want to see, you know, the

assistance immediately cut off. they won a chance in their own countries to work on this kind of change specifically. i've engaged my counterparts a number of time. they greatly appreciate the relationship and are working their way through it and they appreciate the support. it is really for them to work for this and they want to sustain the relationship. we may have to adjusted over time, but they're certainly not calling for any significant change right now. >> i would say can i just pick up on the chairman's point. i think we shouldn't lump of these countries in together. so i would say with respect to libya, what limited military relationships we have with the gadhafi government are at an end. on the other hand, with the others, the continuation of military foreign finance team, our assistance programs that it is really important that these

continue. i think we've seeing the results come in the beneficial results of this engagement over time. and i think it's beyond continuing with most of these government the relationships we've had for many years. i think we have to take our time and look at it. [inaudible] can you tell us more detail about these? i have a second question. >> i'm no longer a customer. >> all just say proudly, this is part of a series of exercises that go on all the time between

the u.s. and republic of korea forces. they are part of a program of making sure that we have the capabilities and we have the skills to be able to respond to various contingencies we've seen over the last year provocations by the north that make the importance of these exercises i think even more clear. >> the only thing i would add is we've had challenges certain air of the year, significant challenges. i've been striving for how long the relationship has been, how immediate the coming together in how we are able to do that so quickly because of this relationship certainly male to male, but also between the two countries. and that underpins, you know, a long-term strategy, which i

think is headed in the right direction. >> you're optimistic about the changes. and you think that will lead to reforms? don't you think that having similar changes in some countries like jordan or saudi arabia could put u.s. interests in danger or jeopardy? >> well, i don't hang so. we obviously have very strong and long-standing relationships with both of those countries, friendships. and both teams have undertaken reforms over time. there is clearly a need for a continuation of those efforts and we are supportive of them. but i think i relationships with both countries are very deep and go back a very long time. and i would be surprised if any

changes in those countries, of the kind we're talking about would significantly negatively affect their relationships. last question. >> secretary, you put better asset in italy for any possibility of a no-fly zone operation. would you think it would be sensible to have a carrier also to increase flexibility and you have plans to move a carrier? >> as they sat at the outset, were looking at at all varieties and contentions. thank you.

>> the people of libya have made themselves clear. it is time for gadhafi to go. now without further violence or delay.

>> on monday, president obama told the nation's governors he would support their efforts to lessen the effect of the health care law understates budgets. up next, three governors testified capitol hill on how the states are dealing with medicaid. this is a little less than two and a half hours. [inaudible conversations] [inaudible conversations] >> i would just note that some of the governors have been here in town for a couple of days. they are anxious to get back to their home states that we know that the airport is only minutes away, but because of that we are going to be very -- going to be right on in terms of the cost.

so expect a fast gavel for all of our members. this month marks the one-year anniversary of the president signed into law a pair of controversial health care bills that are transforming the way americans receiving pay for health care. we can be in this hearing today to hear from the governors about what impact the health care law has had on their states thus far and what they believe will be the toughest challenge that they face in implementing the president health care reform package over the coming years. medicaid currently covers nearly 54 million americans could the administration actually has said expansions included in the law have increased the nation medicaid rolls by at least 20 million beginning in 2014. the president health care reform package alter the relationship has had with the states by requiring the states drastically their medicaid population, governors are also deeply concerned about the new unfunded

mandates in the loss and their impact on current state budgets. the cbo estimates these mandates and expansion will cost states at least $60 billion, but the states themselves estimate the cost will be nearly twice as much. today i joined members of the senate finance committee to release the first comprehensive analysis of what the states themselves expect to spend as a result of the health care law and the results are sobering. even using conservative estimates states while phase $118 billion in 2023 as a result of the loss band-aid. today's governors cannot afford to continue offering the same benefit the same way other medicaid populations. however the health care law put us between a rock and a hard place. economic eligibility changes in their options and programs because the health care law freezes or current programs in place for years. there'll be an opportunity to hear from three of the nations

most awful governors. although his governors you have roadmaps with health care reform and believe you can always print date innovation and flexibility are key and a guilt now one minute to mr. barbour. >> thank you, mr. chairman. i welcome mark governors here. i'm sure they'll be here at the appropriate time. i'm going for my entire statement into the record simply. this is the same old story, just a new chapter we have heard year after year that we need more flexibility for medicaid partners at the state level. my governor of texas has sent a letter at the appropriate time and he points out in texas on medicaid will be 25% of the entire budget and over the next 10 years it will cost an additional $27 billion in state matches to the federal government. so this is a very good hearing. i look forward to listening to three governors today working with all governors and if it

stays to try to find a solution to help maintain this program and continue to benefit package, but also find a way to impact the cost. thank you, mr. chairman for the hearing. >> i get the remainder of my time to dr. burgess. >> thank you, mr. chairman. i want to thank the chairman for his commitment to listening to the states of this exercise because it is so critical what happens at the state level. there were a handful of people on this panel but it's in the medicare -- medicaid patients and their professional careers before coming to congress. i am one of those. when i point out the massive flaws of the system, it not out of a lack of compassion that precisely the opposite. the federal government create the system to care for the poor come in the poorest in society, but it's becoming an empty promise because often times it is a bait and switch. to counter cyclical nature of the program continues growth in times of financial excess when

the economy goes bad. those of medicaid find themselves unable to access services because medicaid pay so much less than comparable services, even medicare pays better than medicaid. the medicaid nation soon realize the coverage does not equal access. during the debate held over the portable care act, we never tackled the basic question for her to start fresh with a blank sheet of paper, what would we -- what would it look like? would it look like it does today? people on this i doubt that away. time after time, providers say the endorsement for the two most important reasons for limiting their participation. and then we expanded the situation without improving it remained a worse. why do we even still have medicaid in 2014? the answers some people involved a year ago didn't care about how to provide medicare or how to

coordinate or get more people to purchase innovative s