The Possibility of health care reform has helped focus attention on eq
uity in the receipt of health care. This is a Particular issue for the
Medicaid Program, as State variations in eligibility and Payment poli
cies have historically created inequity This study examines equity for
Medicaid beneficiaries and State taxpayers during the latter 1980s. F
indings indicate that federally mandated expansions significantly incr
eased equity in the coverage of the poor, but inequality in real resou
rces per enrollee remained significant Although equity improved from 1
984 through 1998, the increased use of provider-specific tax and volun
tary donation (T&D) programs by traditionally high-spending States Pla
yed an important role in the 1992 figures.