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LifeMasters' CEO, Christobel Selecky, Testifies to the House Ways & Means Health Subcommittee

DMAA President-Elect Selecky Discusses Implementation of Phase 1 of Medicare Modernization Act's Chronic Care Improvement Program

WASHINGTON, DC - May 11, 2004 - Christobel Selecky, CEO of LifeMasters Supported SelfCare Inc., and President-Elect of the Disease Management Association of America (DMAA), presented testimony this afternoon on behalf of the DMAA at a hearing held by the Subcommittee on Health of the House Ways & Means Committee. The subject of the hearing was the Chronic Care Improvement Program (CCIP) authorized by the Medicare Modernization Act that was signed into law on December 8, 2003. A full transcript of her testimony will be available online at http://waysandmeans.house.gov.

Ms. Selecky, who also serves as Government Affairs Committee Chair for DMAA, was invited to speak by Congresswoman Nancy L. Johnson (R-CT), Chairman, Subcommittee on Health of the House Committee on Ways & Means. Selecky discussed the recently released Request for Proposals for Phase 1 of the CCIP and offered remarks based on input from more than 70 members of the DMAA, representing a cross-section of the DM community. Invited witnesses also included representatives from the Centers for Medicare & Medicaid Services (CMS) and the American Academy of Cardiology.

"The overwhelming consensus of DMAA's membership is that the Phase 1 RFP is comprehensive and clear, reflecting the intent of the landmark enabling legislation as well as the current state of population-based disease management," said Selecky. "As a result of the Medicare Modernization Act (MMA) and the resulting CCIP, there is now a framework for transforming chronic care in America and for significantly impacting the quality of life enjoyed by millions of seniors with chronic conditions."

As part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) (P.L. 108-173) that was signed on December 8, 2003, Congress provided for a Chronic Care Improvement Program within fee-for-service Medicare. On April 20, 2004, CMS releaseda Request for Proposals (RFP) for chronic care improvement programs focused on congestive heart failure, diabetes, and chronic obstructive pulmonary disease. CMS will select programs to operate in 10 regions of the country to evaluate different approaches to the management of chronic conditions. The initial phase of the CCIP will be based on improved quality in health outcomes, beneficiary satisfaction, and financial savings to the Medicare program.

In her testimony, Ms. Selecky recommended the following steps, in response to the RFP issued for Phase I of the Chronic Care Improvement Program:

• The continued support of CMS with the resources necessary to build the infrastructure for administering and monitoring the Chronic Care Improvement Program;



• The implementation of disease management programs whenever Medicaid reform is at issue;



• That CMS consider accreditation by one of the major accrediting bodies - or a set of minimum criteria - as a threshold for contracting in order to ensure consistency and a standard level of quality;



• That CMS consider incentivizing chronic care improvement organizations to devote resources over and above those necessary to achieve the minimum net savings requirement by allowing them to receive a share of savings over and above the 5% minimum guaranteed financial savings;



• That CMS consider implementing all of the pilot programs simultaneously rather than staging implementation over an extended period of time in order to ensure that results can be measured equitably and consistently;



• That The Committee and CMS be open to expanding the program earlier than the currently specified two years from inception when the results begin to show the expected cost savings and quality improvements;



• That CMS ensures that models selected provide a win-win for all stakeholders in the chronic care community; and



• Ensure that models selected have proven outcomes and reflect models that can be easily scaled for Phase 2.

Medicare beneficiaries with five or more chronic conditions represent 20 percent of the Medicare population, and account for 66 percent of program spending. The CCIP represents a new way of approaching the care of beneficiaries within the fee-for-service program by shifting from a focus on acute episodes to the management of on-going chronic conditions.

Based in Washington, D.C., the Disease Management Association of America is a non-profit, voluntary membership organization, founded in March of 1999, which represents all aspects of the disease management community. For more information, please visit www.dmaa.org.

LifeMasters Supported SelfCare, Inc., headquartered in Irvine, CA, is one of the nation's largest disease management companies. The Company provides programs that create interactive health partnerships among patients, physicians and payors. Its mission is to empower individuals to achieve optimal health. For more information, please visit www.lifemasters.com.

For More Information Contact:

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