SALEM, Ore. (AP) — Oregon Democratic Gov. John Kitzhaber has signed a bill to implement his plan to redesign health care in the state.

The former ER doctor says the changes will greatly improve care for low-income patients, and it promises to reduce costs so significantly that it could help fix the federal budget.

The new law would allow new ways of paying for and delivering health care, like assigning the costliest Medicaid patients a caseworker to manage all aspects of a client's care — from medical to mental — with the goal of eliminating redundant tests and procedures and reducing expensive hospital stays.

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