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The best Medicaid policy would mainstream as many individuals andfamilies as possible into private coverage and encourageself-direction for those the Medicaid safety net was intended. Whenconsidering changes in the Medicaid program, federal and statepolicymakers should ensure fiscal control and improve the way thatlow-income individuals and families receive care.
It is not enough to treat the symptoms of the Medicare problem. Tomeet the emerging needs of the baby-boom generation, Congress andthe Administration should take steps soon to create a newcompetitive system modeled after the FEHBP, the successful programthat covers themselves and their families.