This report analyzes the Medicaid waiver proposed by the Governor and the Department of Health and Welfare. This report predicts that, for those who rely on Medicaid, the proposal will lead to increased costs, may restrict benefits, and is likely to cause many people to forgo needed medical care. The waiver is also likely to shift health care costs onto counties, health care providers, and people who have health insurance, without generating revenue for the state or addressing the real cost drivers in Medicaid.