Integrating a limited number of Medicaid beneficiaries into a private practice benefits both patient and physician.

Mr. Cooper's alliances would serve only small businesses, Medicaid beneficiaries and those otherwise uninsured.

Children account for approximately half of Medicaid beneficiaries but only roughly 20-25 percent of the costs of the program overall.

Moreover, he said, Medicaid beneficiaries have derived immense therapeutic benefits from such drugs, reducing the need for hospitalization and surgery.

The states intend to hold down increases in spending on medicines for millions of employees and Medicaid beneficiaries.

In many cases, Medicaid beneficiaries simply did not receive the services they were supposed to receive.

Since 1992, the number of Medicaid beneficiaries receiving such care under federal waivers has tripled, to 800,000, and it is expected to continue growing.

But they defended the terms, saying they were necessary to assure that the city provided proper access and quality to Medicaid beneficiaries enrolled in such plans.

They discriminate against Medicaid beneficiaries by denying them admission.

Doctors and hospitals could deny services to Medicaid beneficiaries who did not make the required co-payments.