This paper critically reviews the federally funded Early and Periodic Screening, Diagnosis and Testing (EPSDT) program, and highlights problems in its design and functioning. A prime example of a preventive health program that is commendable in intent but ineffective in actual practice, the EPSDT program's failure was prompted by factors which included: (1) the socio-political climate of the late 1960's; (2) lack of community support for the program; (3) problems in design of the program; and (4) problems in implementation. To prevent the failure of future programs, a comprehensive, strongly preventive approach to physical and mental health care for children is deemed necessary. Implications of national health insurance are discussed. Legislation similar to EPSDT, the Children's Health Assessment Program (CHAP), is evaluated in light of the criticisms and problems of EPSDT, and recommendations for future policy are made. (Author/RH)