State government Medicaid programs provide medical insurance to poor and disabled people. Under federal law, the programs must provide reimbursements to people who use any prescription drug that has been approved as effective by the U.S. Food and Drug Administration (FDA). In recent years, pharmaceutical firms have developed new prescription drugs that cost as much as $1,000 per pill to treat hepatitis C, a liver disease. A news story notes, "State Medicaid programs are particularly sensitive to annual cost increases . . . [because] coverage is paid for, in part, out of state budgets, which have to be balanced every year." What trade-offs do state governments face when new prescription drugs are introduced with much higher prices than existing drugs? Do you agree with the federal law requiring that Medicaid programs must cover every drug that has FDA approval? Briefly explain.