The Medicaid program and its impact on the long-term care of developmentally disabled individuals were the subject of this hearing, held in September 1986. The hearing examined the current funding provided through Medicaid, the range of services delivered, and the most appropriate setting for long-term care of the developmentally disabled (institutional care or community care). A 57-page report prepared by the Congressional Research Service of the Library of Congress summarized the issues concerning Medicaid and other Federal services for persons with mental retardation and developmental disabilities. Representatives from the Health Care Financing Administration and the Office of Human Developmental Services presented U.S. government positions. Public witnesses represented university programs, state agencies, and national associations. Additional prepared statements, letters, and supplemental materials represented state developmental disabilities and advocacy agencies; local, state, and national voluntary organizations; and concerned parents. (JDD)