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Many Medicare Demos Do Not Reduce Spending, CBO Reports

Medicare demonstration projects may need more careful design to meet cost-saving goals, says the Congressional Budget Office. Better methods to evaluate the success of demos are also necessary, the budget office argues in a January 2012 report.

An analysis of 10 major demonstration projects that have been carried out by CMS shows little in the way of significant reductions in health care spending, according to the Congressional Budget Office.

CBO assessed the outcomes of the projects in a January 2012 report. Six were characterized as “disease management and care coordination” demos, which sought to improve quality of care of...

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