In passing this office to the Vice President, I also do so with the profound sense of the weight of responsibility that will fall on his shoulders to… - Richard Nixon

The most important proposal I make today is to reform the Medicaid program. Medicaid is plagued by serious faults. Costs are mounting beyond reason. Services vary considerably from State to State. Benefits are only remotely related to family resources. Eligibility may terminate abruptly as a family moves off often losing more in medical benefits than it gains in income. In short--just like the existing welfare system--Medicaid is inefficient, inequitably excludes the working poor, and often provides an incentive for people to stay on welfare. I will propose legislation at the beginning of the next Congress to establish a family health insurance program for all poor families with children. This insurance would provide a comprehensive package of health services, including both hospital and outpatient care. Final decisions on the specifications of the family health insurance proposal must await further review by the new Domestic Council. We are satisfied that the basic principles will work. This proposal will constitute the second legislative stage of the administration's income strategy against poverty.

I know what a burden a visit by VIP's places upon an Embassy. I first came to Paris, I remember, 22 years ago in this same building, and then as a Congressman. I know we caused a lot of trouble. I guess that hasn't changed. But, anyway, then I came back as a Senator in 1951, and I have been here many times since. I didn't come here as a Vice President, and now I come as a President. They tell me that that is even harder harder on the staff, I mean. But I do want you to know that I realize it is hundreds of people, literally hundreds of people, that I will never be able to thank personally or by letter, or to greet personally, who worked on this visit.

My suggestions this evening for new directions toward a more balanced relationship come from many sources. First, they are rooted in my personal convictions. I have seen the problems of this hemisphere. As those in this room know, I have visited every nation in this hemisphere. I have seen them at first hand. I have felt the surging spirit of those nations--determined to break the grip of outmoded structures, yet equally determined to avoid social disintegration. Freedom, justice, a chance for each of our people to live a better and more abundant life--these are goals to which I am unshakably committed because progress in our hemisphere is not only a practical necessity, it is a moral imperative. Second, these new approaches have been substantially shaped by the report of Governor Rockefeller, who, at my request and at your invitation, listened perceptively to the voices of our neighbors and incorporated their thoughts into a set of farsighted proposals. Third, they are consistent with thoughts expressed in the Consensus of Vina del Mar, which we have studied with great care. A list of 46 specific proposals for United States trade and aid policy changes drawn up at Vina del Mar, Chile, by ministers from 21 Latin American nations in May 1969. Fourth, they have benefited from the counsel of many persons in government and out, in this country and throughout the hemisphere. And, finally, basically they reflect the concern of the people of the United States for the development and progress of a hemisphere which is new in spirit, and which, through our efforts together, we can make new in accomplishment.