Two hearings held a month apart examine major issues concerning Medicaid benefits in family welfare and nursing home reform. The first set of hearings discusses the proposed Family Welfare Reform Act of 1987 (H.R. 1720), which is intended to replace the Aid to Families with Dependent Children (AFDC) program of the Social Security Act Title IV. Expert witnesses from the legal and social services community discuss ways to assure that women who leave the welfare rolls and return to work can continue to have Medicaid or other health care coverage for themselves and their children. Statistical data are included on two tables and two graphs. The second set of hearings concern the Medicaid Nursing Home Quality Care Amendments of 1987 (H.R. 2270), to amend the Social Security Act Title XIX to change the Medicaid requirements for nursing facilities, other than intermediate care facilities for the mentally retarded. The purpose of the amendments are to improve the quality of care that poor elderly and disabled Medicaid patients receive in nursing homes. New requirements concern the following: (1) service provision; (2) residents' rights; (3) administration; and (4) compliance and sanctions. Thity-nine witnesses from the health care community provided supporting testimony, including case studies. The full text of H.R. 2270 is included. (FMW)