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Disease Management For Chronically Ill Beneficiaries In Traditional Medicare
David M. Bott,
Mary C. Kapp,
Lorraine B. Johnson and
Linda M. Magno
We summarize the Centers for Medicare and Medicaid Services’ (CMS’s) experience with disease management (DM) in fee-for-service Medicare. Since 1999, the CMS has conducted seven DM demonstrations involving some 300,000 beneficiaries in thirty-five programs. Programs include provider-based, third-party, and hybrid models. Reducing costs sufficient to cover program fees has proved particularly challenging. Final evaluations on twenty programs found three with evidence of quality improvement at or near budget-neutrality, net of fees. Interim monitoring covering at least twenty-one months on the remaining fifteen programs suggests that four are close to covering their fees. Characteristics of the traditional Medicare program present a challenge to these DM models.
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