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February 25, 2004
 CMS Policy Letter on
Disease Management for Medicaid Programs
This letter from
Dennis G. Smith, Director, Center for Medicaid Services,
Department of Health and Human Services to State Medicaid
Directors provides guidance on how states can cover disease
management in their Medicaid programs. This letter outlines some
of the more common options. Traditionally, disease management was
part of the comprehensive care furnished by MCOs. Today, we are
seeing a multitude of strategies in order to bring disease
management to fee-for-service (FFS) populations. States are
building comprehensive systems in-house or contracting out the
function to Disease Management Organizations (DMOs). This letter
outlines some of the options available to states with regard to
designing and operating disease management programs.
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