States want to take on the federal government, by challenging the Medicare drug plan in the Supreme Court:

A group of states aims to challenge the new federal prescription drug plan in the U.S. Supreme Court, California’s attorney general said on Wednesday, alleging the plan could cost his state $750 million over the next three years.

California Attorney General Bill Lockyer said his state will bring the lawsuit and other states are expected to join in arguing to the high court that a provision requiring states to pay back some of their potential longer term savings from the plan is unconstitutional.

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