This study was designed to review, describe, and analyze state policy on assisted living. Two surveys were developed covering general licensing issues and Medicaid reimbursement policy. The surveys were mailed to state Aging, Health, and Medicaid agencies. The information was collected between January and March 1998. Copies of existing and draft regulations, where appropriate, were received from each state. Telephone interviews were conducted as necessary with state agency staff to clarify survey response information or to discuss key issues. The narrative describes state policy trends for licensing and reimbursing assisted living. Summaries of each state's policy and regulations covering assisted living and board and care are presented.