Michigan has awarded its bids to health plans administering Medicaid throughout the state, granting additional territory and clout to two regional players and rebuffing another major plan's attempt to get into the Medicaid segment – the only growing part of the market. The $3.38 billion program is likely to spend around $370 million on prescription drugs through plan formularies next year. Health Alliance Plan's new CEO, William Alvin, discusses his company's strategy for surviving the economic downturn. Michigan's commercial insurance sector has shrunk because of the state's long economic slide, and its health plans are charting new strategies and trying new plan designs to retain members whenever possible.