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| Introduction | p. 1 |
| Background of the Medicaid Problem | p. 5 |
| Notes | p. 19 |
| Problems of the Current Medicaid Program | p. 21 |
| Notes | p. 28 |
| Goals for a Reformed Medicaid Program | p. 30 |
| Notes | p. 41 |
| Federal-State Financing Relationships: A Catalog of Policy Options | p. 42 |
| Summary of Financing Alternatives | p. 62 |
| Notes | p. 65 |
| More Policy Options: Direct Methods to Reduce Medicaid Costs | p. 68 |
| Notes | p. 83 |
| Improving Medicaid and Controlling Cost | p. 85 |
| Notes | p. 94 |
| Summary of Policy Recommendations | p. 95 |
| Apendix A Demand for Transfers in A Federal System | p. 98 |
| Notes | p. 103 |
| Beneficiary Choice Medicaid: An Example | p. 104 |
| Note | p. 107 |
| Tables and Data Sources | p. 108 |
| Selected Aei Publications | p. 114 |
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