SEATTLE (AP) — Washington state's Medicaid program that gives free health insurance to the poor is working with the federal government on an experiment that is expected to save taxpayer dollars and improve services.

The new program would combine Medicaid with Medicare, which is the federal health insurance for older Americans.

Some elderly and disabled people qualify for both federal programs. The demonstration project announced Monday would enable the programs work together to serve this subset of people.

State officials say the experiment would allow Medicare and Medicaid to avoid duplicating services, and then they will share the money they save by working together. In the past, there was no financial incentive to cooperate.

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