This two-part report examines why the Children's Medical caseload declined following a series of eligibility policy changes implemented in April 2003. Changes included new signature and income verification requirements, a 6-month eligibility review cycle, and termination of 12-month continuous eligibility. Part I examine administrative data and found a net decline of 39,085 children on the Children's Medical caseload in the 18 months following the eligibility policy changes. Most of the loss of coverage was attributable to increased exits, as opposed to few newer entries or increased cycling off and on the caseload. Part II used client survey data to better understand why children left the Children's Medical program after the policy changes.