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Many still wrong in their DM savings calculations: the actuarial approach can demonstrate more savings, but a plausibility test in utilization rates reveals the reality.

Publication: Managed Healthcare Executive
Publication Date: 01-JUN-08 		Format: Online
Delivery: Immediate Online Access
Full Article Title: Many still wrong in their DM savings calculations: the actuarial approach can demonstrate more savings, but a plausibility test in utilization rates reveals the reality.(MANAGED CARE OUTLOOK)

Article Excerpt
The Centers for Medicare and Medicaid Services (CMS) cannot find financial savings through disease management, and, as a result, curtailed their Medicare Health Support (MHS) pilots. This lack of savings by itself is not surprising, because by almost all accounts, they implemented the program poorly.

What is disturbing is that CMS's conclusion also mirrors that of the Congressional Budget Office and the RAND Corp. Yet, other organizations and consultants are finding enough value to justify contract extensions and expansions. Paradoxically, one such announcement...



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