The savings came despite an increase in enrollment as costs fell by $43, to $770 per recipient.
However, in an editorial, the Journal pointed out states do not want to cut Medicaid spending.
"Medicaid's usual reimbursement formula rewards states for wasting money because for every dollar of expenses the federal government picks up between 50 and 70 cents of the tab," the Journal wrote.
In West Virginia, the federal government puts up nearly $4 for every state dollar, which meant an extra $2.1 billion from the federal government in 2011.
But the state's share of roughly $600 million a year is $600 million unavailable to spend on roads, prisons and other essential services.
Before the Mountain State cuts its other services or raises taxes, it needs to consider what the Ocean State has done.
It seems to be working.