"Lawmakers Weigh Plan for Stimulus"
by Louis Uchitelle, October 9 New York Times: 

....Under the stimulus package that the Congressional Democratic leadership is considering, the mechanism for funneling money to the states and cities would be an increase in federal funding of state Medicaid programs. Those states hardest hit economically would receive more proportionally than those relatively better off.

Whatever the amounts, the federal subsidies would free up money the states currently must put into Medicaid. States might divert that money to cities, for example, to pay teachers and vendors, or it might be used to quickly resume public works projects shut down for lack of funding.

Senator Barack Obama the Democratic presidential candidate, now supports a stimulus plan similar to the one the Congressional Democratic leadership is seriously considering....

Seems to me, once released from those Medicaid expenses, states would be loathe to have to start picking them up again, especially if the economy continues in recession with loss of employed taxpayers, and other states would ask for the same deal. This is a step to more centralization on health insurance. The Federal health care expenditure will grow larger on the books, but I think the issues raised by that would be a good thing on the path.

If you are interested in movement towards single payer, consider expressing support  to your Congressperson for using this method for any aid to states.