Evaluation of the LifeMasters Disease Management Demonstration Program for Dual Eligible Beneficiaries

The LifeMasters fee-for-service population-based disease management demonstration was authorized by Section 402(a)(1)(B) of Public Law 90-248, as amended (42 U.S.C. 1395b-1(a)(1)(b)). LifeMasters provides disease management services to chronically ill dual-eligible fee-for-service Medicare beneficiaries in the state of Florida. The targeted conditions are congestive heart failure (CH), coronary artery disease (CAD), and diabetes. The goal of the program is to increase quality of care and reduce Medicare costs. The program is required to be budget neutral. The demonstration began January 1, 2005 and was scheduled to end December 31, 2007. CMS extended the LifeMasters program demonstration for an additional three years because it was beginning to show some Medicare cost savings. The demonstration extension period is January 1, 2008 - December 31, 2010. For the extension, the evaluation contractor will be required to submit an interim summary report and a final report to CMS based on claims analysis. The reports will include examining the effects of the demonstration on quality-of-care processes, Medicare service utilization, and Medicare costs.