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LifeMasters Applauds Inclusion of Disease Management in Medicare Reform Bill

Groundbreaking Inclusion of Disease Management in Medicare Reform will Enhance Quality of Life for Seniors, Reduce Health Care Costs

Irvine, Calif. (November 25, 2003) - LifeMasters® Supported SelfCare^SM, Inc., a leading provider of disease management programs and services and one of the nation's largest disease management companies, today lauded the inclusion of disease management programs in The Medicare Prescription Drug and Modernization Act of 2003.

Under Section 721 of the groundbreaking legislation, entitled "Medicare Chronic Care Improvement," beneficiaries enrolled in the traditional fee-for-service program would, for the first time, have access to voluntary chronic care improvement programs. The programs will first be administered as a national pilot until clinical and cost containment benefits are further demonstrated. Once that occurs, the bill calls for disease management to be integrated into the Medicare fee for service program.

In addition, Section 722 of the bill provides that plans in the Medicare advantage program must have chronic care improvement programs in place, as part of their annually-reviewed quality improvement criteria.

Christobel Selecky, LifeMasters CEO, President-elect of the Disease Management Association of America (DMAA) and DMAA Government Affairs Chair, said: "We are gratified that the benefits of disease management have been acknowledged in this legislation. We have seen first-hand the improvements that disease management can make in the quality of people's lives The disease management community has been working toward this day for many years and LifeMasters looks forward to playing a leading role in demonstrating the value of disease management in improving our nation's health."

The company has a long track record of demonstrated success in government programs. In a recent announcement, LifeMasters reported the extension of its contract to provide disease management services to thousands of Florida Medicaid beneficiaries with congestive heart failure (CHF). In its first two years, the LifeMasters program reduced total health care costs for the covered population by 16.3% percent.

Studies have shown that medical expenses incurred by individuals with chronic illness account for a disproportionate share of health care expenditures in this country. By keeping individuals healthy and following the best standards of care, preventable emergency hospitalizations are reduced. In its first two years, Florida Medicaid beneficiaries in the LifeMasters program spent 38 percent fewer days in the hospital than before the program began.

"We've demonstrated that disease management programs can significantly improve health care and reduce costs, and that we can work effectively with government," said Selecky. "We're eager to begin providing our services to Medicare beneficiaries."

For More Information Contact:

Denise Apcar LifeMasters, Inc (650) 829-6217 pr@lifemasters.com