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Not enough evidence to show disease management cuts health care costs, CBO says

Not enough evidence to show disease management cuts health care costs, CBO says
October 15, 2004

Insufficient evidence exists to prove that disease management programs can lower overall health care costs, concluded the Congressional Budget Office in a report released Oct. 13. The CBO based its analysis, conducted at the request of Senate Budget Chairman Don Nickels (R-OK), on a review of medical journal studies on disease management programs for congestive heart failure, coronary artery disease and diabetes. The CBO found that few studies directly addressed the costs of such programs, and those that did failed to capture all forms of health care spending, excluded administrative costs, did not consider the unintended consequences of intervention, and were conducted in limited, controlled settings. If applied to a broader population, the programs could actually increase health costs, the report says. The CBO also found little evidence to address obstacles in translating disease management into savings for Medicare, including an older, sicker population and the current fee-for-service system. But, in a letter prefacing the report, CBO Director Douglas Holtz-Eakin pointed out that, “such programs could be worthwhile even if they did not reduce costs.” He also said the CBO will continue new research as it becomes available. The report is available at http://www.cbo.gov.