ATLANTA -- Louisiana insurance commissioner Jim Brown has proposed that the state set up a managed health care system in order to head off a looming $740 million budget gap in fiscal 1996 expected to result from changes in the federal Medicaid program.

Brown is pitching his idea as the federal government prepares to phase out its "disproportionate" Medicaid payments to Louisiana at the end of the state's current fiscal year, June 30, 1995.

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