Issue 145 Item 5 HHS to Launch Disease Management Demo

Applicants will have 90 days to submit proposals The Bush administration on Thursday said it is seeking proposals to create tailored health plans catering to the needs of Medicare beneficiaries with specific chronic conditions, such as stroke, congestive heart disease and diabetes.

Organizations selected to participate in the three-year demonstration would receive monthly capitated, or per-member, payments in exchange for providing all Medicare Part A and Part B services. Those rates would be adjusted to reflect the health status of beneficiaries.

The administration has said it is committed to finding ways to incorporate disease management in Medicare, believing that appropriate care will improve patient outcomes and save money.

If the results are positive, it would reform Medicare.

CMS has not said how much would be invested in the demo. A notice of the project will be published in Friday’s Federal Register, and applicants will have 90 days to submit proposals