Mississippi suffers from the dual problem of a large poor population with significant health care needs and a small state budget with which to meet these needs. An important policy issue is the maximization of federal dollars available to support the state's health programs. Mississippi's Medicaid match rate is the most favorable in the nation, and Medicaid is viewed as a potential revenue generator for the state. Despite recent progress, however, rapidly increasing budgetary pressures have made any program expansions unlikely for the near future and may threaten earlier gains in eligibility and enrollment.