The program is aimed at reducing costs and enabling better health outcomes for chronic conditions. The participating practices will report to HHS on quality measures of the practice, and may be eligible to receive an incentive payment if actual expenditures for a year are less than the estimated spending target established by HHS. Target outcomes include: reduce preventable hospitalizations, re-admissions and ER visits; and improve efficiency of care.

The programs will serve beneficiaries who have two or more chronic illnesses; have had a non-elective hospital admission within the prior 12 months; have received acute or sub-acute rehabilitation services within the prior 12 months; or have two or more functional dependencies requiring the assistance of another person. The three-year demonstration program for at-home medical practices is slated to begin by January 1, 2012.


Medicare Trustees Report

In other reform news, President Obama discussed the most recent Medicare Trustees report during his weekly address to the nation. The report states that the Affordable Care Act "improves the financial outlook for Medicare substantially," although some future effects of the provisions in the law are unknown.

Obama said the Trustees' report was "good news": "According to this report, the steps we took this year to reform the health care system have put Medicare on a sounder financial footing. Reform has actually added at least a dozen years to the solvency of Medicare--the single longest extension in history--while helping to preserve Medicare for generations to come."

Medicare is more solvent by reducing waste, fraud, and abuse, Obama said, not by changing guaranteed benefits to seniors. "In fact, seniors are starting to see that because of health reform, their benefits are getting better all the time....So we are no longer accepting business as usual. We're making tough decisions to meet the challenges of our time. And as a result, Medicare is stronger and more secure."

The president's remarks can be found here.

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