If the headlines aren’t depressing enough for you, here’s more glum news. States are slashing health services to poor people at such rapid rates that even a federal rescue package might not be able to restore services, the LA Times reports. And the faltering economy “has all but killed trailblazing state campaigns to expand coverage for the working poor—once seen as hopeful signs for national healthcare reform.”

In Illinois nursing homes facing bankruptcy because of slow state payments may have to relocate old and frail patients.

South Carolina has cut treatment for poor women under age 40 with breast or cervical cancer, and stopped providing nutritional supplements for kidney failure patients.

In Nevada some cancer patients, are struggling to get their chemotherapy after the largest public hospital stopped outpatient cancer services. They’ve been dubbed “medical refugees.” And the list goes on to other states, across the country.

The federal stimulus program is likely to have up to $100 million in Medicaid money for the states, and the House and the Senate hope to quickly expand the SCHIP program for low income children. But according to the Center for Budget and Policy Priorities, at least 44 states face budget shortfalls over the next two years totaling more than $350 billion. (See chart bellow)

“Red” and “Blue” states are both affected, so maybe that will spur both speed and bipartisanship on Capitol Hill as lawmakers work on both the emergency health care needs in the stimulus bill and the major repairs to our health care system that can’t come a moment too soon.