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Testimony:

Before the Subcommittee on Health, Committee on Energy and Commerce, 
House of Representatives:

United States Government Accountability Office:

GAO:

For Release on Delivery Expected at 2:00 p.m. EDT:

Tuesday, Sept. 21, 2004:

Medicare Preventive Services:

Most Beneficiaries Receive Some but Not All Recommended Services:

Statement of Janet Heinrich:

Director, Health Care--Public Health Issues:

GAO-04-1004T:

GAO Highlights:

Highlights of GAO-04-1004T, a testimony before the Subcommittee on 
Health, Committee on Energy and Commerce, House of Representatives

Why GAO Did This Study:

Preventive care depends on identifying health risks and on taking 
steps to control these risks. In contrast, Medicare, the federal 
health program insuring almost 35 million beneficiaries age 65 or 
older, was established largely to help pay beneficiaries’ health care 
costs when they became ill or injured. Congress has broadened Medicare 
coverage over time to include specific preventive services, such as 
flu shots and certain cancer-screening tests, and the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (MMA) 
added coverage for several preventive services, including a one-time 
preventive care examination for new enrollees, which will start in 
2005.

GAO’s work, done before MMA, included analyzing data from four 
national health surveys to examine the extent to which Medicare 
beneficiaries received preventive services through physician visits.
GAO also interviewed officials from the Centers for Medicare & 
Medicaid Services (CMS) and other experts and reviewed the results of 
past demonstrations and studies to assess expected benefits and limits 
of different delivery options for preventive care, including a one-
time preventive care examination.

What GAO Found:

Most Medicare beneficiaries receive some but not all recommended 
preventive services. Our analysis of year 2000 data shows that nearly 
9 in 10 Medicare beneficiaries visited a physician at least once that 
year; beneficiaries made, on average, six visits or more within the 
year. Still, many did not receive recommended preventive services, 
such as flu or pneumonia vaccinations. Moreover, many are apparently 
unaware that they may have conditions, such as high cholesterol, that 
preventive services are meant to detect. In one 1999–2000 nationally 
representative survey where people were physically examined and asked 
a series of questions, nearly one-third of people age 65 or older whom 
the survey found to have high cholesterol measurements said they had 
not before been told by a physician or other health professional that 
they had high cholesterol. Projected nationally, this percentage 
translates into about 2.1 million people who may have had high 
cholesterol without knowing it.

Estimated Number of Medicare Beneficiaries Age 65 or Older Who Were 
Aware or Unaware That They Might Have High Blood Pressure or High 
Cholesterol, 1999–2000: 

[See PDF for image]

[End of figure]

A one-time preventive care examination may help orient new 
beneficiaries to Medicare and provide further opportunity for 
beneficiaries to receive some preventive services. Covering a one-time 
preventive care examination does not ensure, however, that 
beneficiaries will receive the recommended preventive services they 
need over the long term or consistently improve health or lower costs. 
CMS is exploring an alternative that would provide beneficiaries with 
systematic health risk assessments by means other than visits to 
physicians. A key component of this early effort involves the coupling 
of risk assessments with follow-up interventions, such as referrals. 

www.gao.gov/cgi-bin/getrpt?GAO-04-1004T.

To view the full product, including the scope and methodology, click 
on the link above. For more information, contact Janet Heinrich on 202-
512-7119.

[End of section]

Mr. Chairman and Members of the Subcommittee:

I am pleased to be here today as you discuss seniors' health and the 
preventive care benefits in the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (MMA). Overall preventive 
care depends heavily on identifying health risks associated with the 
onset or progression of disease and on taking steps to reduce or 
mitigate these risks. The Medicare program, in contrast, was 
established largely to help pay beneficiaries' health care costs when 
they became ill or injured. Over time, however, Congress has broadened 
Medicare coverage to include specific preventive services, such as 
immunizations for influenza and pneumonia and screening tests for 
certain cancers, that aim to keep an illness or condition from 
developing or becoming more serious. Most recently, in passing the MMA, 
Congress added coverage, to start in 2005, for a one-time preventive 
care examination for new enrollees and for selected other preventive 
services.[Footnote 1]

As these new benefits are implemented under MMA, you have inquired 
about lessons learned from previous research on delivery options for 
preventive services. Since 2002, we have done a series of reports for 
Congress that examines the delivery of preventive care services to 
Medicare beneficiaries. My statement today summarizes some relevant 
findings from our work done before MMA, specifically:

* the extent to which Medicare beneficiaries receive preventive 
services through physician visits, and:

* some of the expected benefits and limitations of delivering services 
through a one-time preventive care examination, including discussion of 
another delivery option being explored by the Centers for Medicare & 
Medicaid Services (CMS).

My testimony today is based on reports and testimony we have issued 
since 2002.[Footnote 2] Our work for these products included a 
synthesis of information on preventive care received by people age 65 
or older[Footnote 3] from four nationally representative health 
surveys;[Footnote 4] a review of the results of past related research 
demonstrations and congressionally mandated studies; and interviews 
with Department of Health and Human Services (HHS) and CMS officials 
and other experts. This work allows us to discuss the benefits and 
limitations of the delivery of preventive services through a one-time 
examination. This body of work was conducted from August 2001 through 
August 2003 in accordance with generally accepted government auditing 
standards. In July 2004, we updated information on recommended 
preventive services and on the status of a CMS effort to explore 
another delivery option.

In summary, although they typically visit a physician several times 
during a year, most Medicare beneficiaries receive some but not all 
recommended preventive services. Our analysis of year 2000 data shows 
that nearly 9 in 10 Medicare beneficiaries visited a physician at least 
once that year, and beneficiaries made an average of six visits or more 
within the year. Despite these opportunities, many beneficiaries did 
not receive recommended preventive services. In 2000, for example, 
about 30 percent of Medicare beneficiaries did not receive an influenza 
vaccination, and 37 percent had never had a pneumonia vaccination as 
recommended under current guidelines for people age 65 or older. 
Moreover, many Medicare beneficiaries are apparently unaware that they 
may have conditions that preventive services are meant to detect. For 
example, in one 1999-2000 nationally representative survey during which 
people received physical examinations, nearly one-third of people age 
65 or older whom the survey found to have high cholesterol measurements 
said they had not previously been told by a physician or other health 
professional that they had high cholesterol. Projected nationally, this 
percentage translates into 2.1 million people age 65 or older who may 
have had high cholesterol without knowing it.

A one-time preventive care examination may provide an opportunity for 
beneficiaries to receive some preventive services while orienting new 
beneficiaries to Medicare. But covering an initial examination does not 
ensure that beneficiaries receive the recommended preventive services 
they need. The results of a CMS demonstration conducted in the late 
1980s and early 1990s indicated that offering Medicare beneficiaries 
packages of broad-based preventive services slightly improved the use 
of some services, such as immunizations and cancer screenings, but did 
not consistently improve health or lower costs. CMS is exploring an 
alternative for Medicare preventive care that, by means other than a 
physician's examination, would provide systematic health risk 
assessments to Medicare beneficiaries. A key component of this 
demonstration, which is still in development, is to address concerns 
that to be effective, risk assessments must be coupled with follow-up 
interventions, such as referrals for follow-up care.

Background:

Preventive health care can extend lives and promote well-being among 
our nation's seniors. Medicare now covers a number of preventive 
services, including immunizations, such as hepatitis B and influenza, 
and cancer screenings, such as Pap smears and colonoscopies. Not all 
beneficiaries, however, avail themselves of covered preventive 
services. Some beneficiaries may simply choose not to use these 
services, but others may be unaware that the services are available or 
covered by Medicare. Further, for some beneficiaries, certain services 
may not be warranted or may be of limited value. Appropriate preventive 
care depends on an individual's age and particular health risks, not 
simply on the results of a standard battery of tests.

To evaluate preventive care for different age and risk groups, HHS in 
1984 established the U.S. Preventive Services Task Force, a panel of 
private-sector experts. The task force recommends certain screening, 
immunization, and counseling services for people age 65 or older. 
Medicare covers some, but not all, of these services (see table 1).

Table 1: Preventive Services Recommended by the U.S. Preventive 
Services Task Force or Covered by Medicare as of August 2003:

Service: Immunization: Pneumococcal; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: 1981; 
Medicare cost-sharing requirements[A]: None.

Service: Immunization: Hepatitis B; 
Task force recommendation for age 65+: No recommendation; 
Year first covered by Medicare as preventive service: 1984; 
Medicare cost-sharing requirements[A]: Copayment after deductible.

Service: Immunization: Influenza; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: 1993; 
Medicare cost-sharing requirements[A]: None.

Service: Immunization: Tetanus-diphtheria (Td) boosters; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered[B]; 
Medicare cost-sharing requirements[A]: N/A.

Service: Immunization: Varicella; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered[B]; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Cervical cancer: Pap smear; 
Task force recommendation for age 65+: Recommends against[C]; 
Year first covered by Medicare as preventive service: 1990; 
Medicare cost-sharing requirements[A]: Copayment with no deductible[D].

Service: Screening: Breast cancer: mammography; 
Task force recommendation for age 65+: Recommends[E]; 
Year first covered by Medicare as preventive service: 1991; 
Medicare cost-sharing requirements[A]: Copayment with no deductible.

Service: Screening: Vaginal cancer: pelvic exam; 
Task force recommendation for age 65+: Not evaluated; 
Year first covered by Medicare as preventive service: 1998; 
Medicare cost-sharing requirements[A]: Copayment with no deductible[D].

Service: Screening: Colorectal cancer: fecal-occult blood test[F]; 
Task force recommendation for age 65+: Strongly recommends; 
Year first covered by Medicare as preventive service: 1998; 
Medicare cost-sharing requirements[A]: No copayment or deductible.

Service: Screening: Colorectal cancer: flexible sigmoidoscopy or 
colonoscopy[F]; 
Task force recommendation for age 65+: Strongly recommends; 
Year first covered by Medicare as preventive service: 1998; 
Medicare cost-sharing requirements[A]: Copayment after deductible[G].

Service: Screening: Osteoporosis: bone mass measurement; 
Task force recommendation for age 65+: Recommends (women only); 
Year first covered by Medicare as preventive service: 1998; 
Medicare cost-sharing requirements[A]: Copayment after deductible.

Service: Screening: Prostate cancer: prostate-specific antigen test and
/or digital rectal examination; 
Task force recommendation for age 65+: Insufficient evidence to 
recommend for or against; 
Year first covered by Medicare as preventive service: 2000; 
Medicare cost-sharing requirements[A]: Copayment after deductible[D].

Service: Screening: Glaucoma; 
Task force recommendation for age 65+: Insufficient evidence to 
recommend for or against; 
Year first covered by Medicare as preventive service: 2002; 
Medicare cost-sharing requirements[A]: Copayment after deductible.

Service: Screening: Vision impairment; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Hearing impairment; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Height, weight, and blood pressure; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Cholesterol measurement; 
Task force recommendation for age 65+: Strongly recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Problem drinking; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Screening: Depression; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Counseling: Smoking cessation, injury prevention, dental 
health; 
Task force recommendation for age 65+: Recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost-sharing requirements[A]: N/A.

Service: Counseling: Aspirin for primary prevention of cardiovascular 
events; 
Task force recommendation for age 65+: Strongly recommends; 
Year first covered by Medicare as preventive service: Not covered; 
Medicare cost- sharing requirements[A]: N/A. 

Source: U.S. GAO-03-958 and U.S. Preventive Services Task Force, Guide 
to Clinical Preventive Services, 2nd ed. (Washington, D.C.: 1996) and 
related updates. According to a task force official, since our 2003 
report was issued, the task force has also recommended diabetes 
screening for people age 65 or older at risk of this disease.

[A] Applicable Medicare cost-sharing requirements generally include a 
20 percent copayment after a $100 per year deductible. Specifically, 
each year, beneficiaries are responsible for 100 percent of the payment 
amount until those payments equal a specified deductible amount, $100 
in 2003. Thereafter, beneficiaries are responsible for a copayment that 
is usually 20 percent of the Medicare-approved amount. For certain 
tests, the copayment may be higher. 42 U.S.C. § 1395(a)(1) (2000).

[B] Although the tetanus-diphtheria (Td) and varicella (chickenpox) 
booster vaccinations are not covered under Medicare as "preventive" 
services, these treatments might be covered under Medicare if necessary 
to a beneficiary's medical treatment. Medicare provides coverage for 
medical treatment and services that are "reasonable and necessary for 
the diagnosis or treatment of an illness or injury," provided that the 
services or products used are "safe and effective" and not merely 
"experimental." 42 U.S.C. § 1395(a)(1)(A) (2000).

[C] The task force recommends against routinely screening women older 
than 65 for cervical cancer if they have had adequate recent screening 
with normal Pap smears and are not otherwise at high risk for cervical 
cancer.

[D] The costs of the laboratory test portion of these services are not 
subject to a copayment or deductible. The beneficiary is subject to a 
deductible, copayment, or both for physician services only.

[E] The task force recommends screening mammography, with or without a 
clinical breast examination, every 1-2 years for women age 40 and 
older.

[F] Data are insufficient to determine which strategy is best to 
balance benefits against potential harm or cost-effectiveness. Barium 
enemas are covered as an alternative if a physician determines that 
their screening value is equal to or greater than sigmoidoscopy or 
colonoscopy.

[G] The copayment has increased from 20 to 25 percent for services 
provided in an ambulatory surgical center.

[End of table]

Medicare's fee-for-service program[Footnote 5] does not cover regular 
periodic examinations, where clinicians might assess an individual's 
health risk and provide needed preventive services. Beneficiaries could 
and still can, however, receive some of these services during office 
visits for other health issues.

In late 2003, MMA added coverage under Medicare for a one-time "initial 
preventive physician evaluation" if performed within 6 months after an 
individual's enrollment under Part B of the program.[Footnote 6] 
Covered services under the examination include measurement of height, 
weight, and blood pressure; an electrocardiogram; and education, 
counseling, and referral services for screenings and other preventive 
services covered by Medicare. MMA also added coverage for various 
screening tests to identify cardiovascular disease (and related 
abnormalities) in "elevated risk" beneficiaries and diabetes in "at 
risk" beneficiaries.[Footnote 7] The new coverage applies to services 
provided on or after January 1, 2005.

Most Beneficiaries Receive Some but Not All Recommended Preventive 
Services:

Nationally representative survey data show that Medicare beneficiaries 
visit physicians often and that most report receiving "routine 
checkups." These data do not show, however, which specific services 
were delivered during those "checkups." Despite the frequency of 
visits, many Medicare beneficiaries do not receive the full range of 
recommended preventive services. Data also show that many beneficiaries 
may not know about their risk for health conditions that preventive 
care is meant to detect.

From 2000 survey data and U. S. Bureau of the Census estimates of 
people age 65 or older, we estimated that beneficiaries visited a 
physician at least six times that year, on average, mainly for 
illnesses or medical conditions. Only about 1 in 10 visits occurred 
when beneficiaries were well (see fig. 1).[Footnote 8]

Figure 1: Major Reasons for Physician Visits by Medicare Beneficiaries 
in the Fee-for-Service Program, 2000:

[See PDF for image]

Note: Numbers do not add to 100 percent because of rounding. The survey 
defined an "acute problem" as a condition or illness of sudden or 
recent onset, a "chronic problem" as a preexisting long-term or 
recurring condition or illness, and "nonillness care" as a general 
health maintenance examination or routine periodic examination of a 
presumably healthy person. For chronic problems, the survey reported 
results separately for "routine chronic problems" and for "chronic 
problem flare-ups." We combined these results in this figure.

[End of figure]

Even though the majority of visits to physicians were to treat illness 
or health conditions, most Medicare beneficiaries reported receiving 
what they considered to be "routine checkups." In CDC's 2000 Behavioral 
Risk Factor Surveillance System Survey, for example, 93 percent of 
respondents age 65 or older reported that they had received a "routine 
checkup" within the previous 2 years.[Footnote 9] This survey did not, 
however, provide information on which specific services were delivered 
during those checkups. Data from another survey, enumerating services 
provided during office visits, indicated that Medicare beneficiaries do 
receive some preventive services during visits when they are ill or 
being treated for a health condition.

Despite how often Medicare beneficiaries visit physicians, relatively 
few beneficiaries receive the full range of recommended preventive 
services covered by Medicare. As we reported in 2002, for example, 
although 91 percent of female Medicare beneficiaries in our analysis 
received at least one preventive service, only 10 percent were screened 
for cervical, breast, and colon cancer and were also immunized against 
influenza and pneumonia.[Footnote 10] Our analysis of additional data 
for our 2003 report showed that many Medicare beneficiaries still did 
not receive certain recommended preventive services. The task force 
recommends, for example, that all people age 65 or older receive an 
annual influenza vaccination and at least one pneumonia vaccination. 
According to data from CMS's Medicare Current Beneficiary Survey of 
2000, however, about 30 percent of Medicare beneficiaries did not 
receive an influenza vaccination, and 37 percent had never had a 
pneumonia vaccination.

Many Medicare beneficiaries may not know that they are at risk for 
health conditions that preventive care could detect--strong evidence 
that they may not be receiving the full range of recommended preventive 
services.[Footnote 11] For example, data from CDC's NHANES for 1999-
2000 show that, of beneficiaries participating in this nationally 
representative survey who, as part of the survey, had a physical 
examination and were found to have elevated blood pressure readings at 
that time, 32 percent reported that no physician or other health 
professional had told them about the condition before. On the basis of 
this survey, we estimate that, during the period when the survey was 
conducted, 21 million Medicare beneficiaries may have been at risk for 
high blood pressure, and an estimated 6.6 million of them may have been 
unaware of this risk. Similarly, 32 percent of those found by the 
survey to have a high cholesterol level reported that no one had told 
them that they had high cholesterol. Projected nationally, this 
percentage translates into 2.1 million Medicare beneficiaries who may 
have had high cholesterol without knowing it (see fig. 2).

Figure 2: Estimated Number of Medicare Beneficiaries Age 65 or Older 
Who Were Aware or Unaware That They Might Have High Blood Pressure or 
High Cholesterol, 1999-2000:

[See PDF for image]

Note: CDC's NHANES measured blood pressure three or four times during 
its 1-day physical examination. For our analysis, we calculated the 
average of the blood pressure measurements and applied CDC's definition 
of high blood pressure: that is, a patient's having an average systolic 
blood pressure equal to or greater than 140, or an average diastolic 
blood pressure equal to or greater than 90, or a patient who reported 
taking hypertension medication. CDC defined high cholesterol as a total 
cholesterol level equal to or greater than 240.

[End of figure]

An Initial Examination May Improve Preventive Care, but Follow-up Is 
Also Key:

A one-time initial preventive care examination covered by Medicare may 
offer opportunity to deliver some preventive services but alone is not 
enough to ensure better health among beneficiaries. Information from a 
CMS demonstration and from other related studies shows that ensuring 
receipt of follow-up care will be important to improving beneficiaries' 
health. A proposed CMS demonstration, currently in design, will explore 
another preventive care delivery option and examine the value of 
linking beneficiaries to needed follow-up services.[Footnote 12]

As proponents of a one-time "Welcome to Medicare" examination told us, 
such an examination could be a means to better ensure that health care 
providers have enough time to identify individual Medicare 
beneficiaries' health risks and provide preventive services appropriate 
for their risks. It could be used to orient new beneficiaries to 
Medicare and encourage them to make informed choices about providers 
and plans. Nevertheless, a one-time examination does not ensure 
delivery of the full range of preventive services. Primary care 
physicians typically cannot provide services such as mammography 
screenings for breast cancer or colonoscopies for colon cancer, because 
these services usually require specialists.

It also is uncertain whether a one-time or periodic examination would 
be an effective way to improve beneficiaries' health. For example, one 
previous CMS initiative that included preventive health care visits 
ended with mixed results. In the late 1980s and early 1990s, the agency 
conducted a congressionally mandated demonstration to test varied 
health promotion and disease prevention services, such as free 
preventive visits, health risk assessment, and behavior counseling, to 
see if they would increase use of preventive services, improve health, 
or lower health care expenditures for Medicare beneficiaries.[Footnote 
13] The agency's final report, published in 1998, concluded that the 
demonstration services were marginally effective in raising the use of 
some simple disease-prevention measures, such as immunizations and 
cancer screenings, but did not consistently improve beneficiary health 
or reduce the use of hospital or skilled nursing services.[Footnote 14] 
The report tempered these results by pointing out that the relatively 
brief period during which the services were provided (roughly 2 years) 
and the limited number of follow-ups and beneficiary contacts with 
providers (one to two) may have been inadequate to achieve measurable 
outcomes.

Determining how to better ensure adequate follow-up once health risks 
are identified is a concern that a new CMS project aims to evaluate. 
CMS is exploring an alternative for Medicare preventive care that would 
provide systematic health risk assessments to fee-for-service 
beneficiaries through a means other than examination by a physician. In 
the late 1990s, the agency commissioned the RAND Corporation to 
evaluate the potential effectiveness of health risk assessment 
programs. Such programs collect information from individuals; identify 
their risk factors; and refer the individuals to at least one 
intervention to promote health, sustain function, or prevent 
disease.[Footnote 15] The study concluded that health risk assessment 
programs have increased beneficial behavior (particularly exercise) and 
improved physiological variables (particularly diastolic blood 
pressure and weight) and general health.[Footnote 16] In addition, the 
study stated that to be effective, risk assessment questionnaires must 
be coupled with follow-up interventions, such as referrals to 
appropriate services. The study recommended that CMS conduct a 
demonstration to test cost-effectiveness and other aspects of the 
health risk assessment approach for Medicare beneficiaries.

Following through on the study's findings, CMS has begun designing a 
demonstration project focused on Medicare fee-for-service 
beneficiaries, called the Medicare Senior Risk Reduction Program, to 
identify health risks and follow up with preventive services provided 
by means other than examinations by physicians. The program will use a 
beneficiary-focused health risk assessment questionnaire to assess 
health risks, such as lifestyle behaviors, and use of clinical 
preventive and screening services. The program will test different 
approaches to administering health risk assessments, creating feedback 
reports, and providing follow-up services, such as referring 
beneficiaries to health-promoting community services including 
physical activity and social support groups. According to project 
researchers, the program will tailor preventive interventions to 
individual risks; track patient risks and health over time; and provide 
beneficiaries with self-management tools and information, health 
behavior advice, and end-of-life counseling where appropriate. The 
design phase had not been finalized as of last week and, according to a 
CMS official, still required approval from HHS and the Office of 
Management and Budget.[Footnote 17]

Concluding Observations:

Current data indicate that many opportunities exist for Medicare 
beneficiaries to receive preventive care, but many beneficiaries 
nonetheless fail to receive the full range of recommended services. 
Although some beneficiaries may not choose to seek these services, 
others may not be aware that these services are available and covered 
by Medicare. Our work shows that more needs to be done to deliver 
preventive services to those beneficiaries who need them, because many 
people may have a health condition that preventive services can easily 
diagnose, and yet they may not know that they have this condition.

A one-time preventive care examination will add a dedicated opportunity 
for delivering preventive care and could help reduce the gap in the 
preventive services that Medicare beneficiaries receive. At the same 
time, it is not a panacea. Ensuring that beneficiaries receive needed 
services and follow-up care is likely to remain a challenge.

Mr. Chairman, this concludes my prepared statement. I will be happy to 
answer any questions that you or Members of this Committee may have.

Contact and Acknowledgments:

For future contacts regarding this testimony, please call Janet 
Heinrich at (202) 512-7119. Katherine Iritani, Matt Byer, Ellen W. Chu, 
Lisa Lusk, and Behn Miller Kelly also made key contributions to this 
testimony.

FOOTNOTES

[1] Pub. L. No. 108-173, 117 Stat. 2066.

[2] See U.S. General Accounting Office, Medicare: Beneficiary Use of 
Clinical Preventive Services, GAO-02-422 (Washington, D.C.: April 
2002); Medicare: Use of Preventive Services Is Growing but Varies 
Widely, GAO-02-777T (Washington, D.C.: May 23, 2002); and Medicare: 
Most Beneficiaries Receive Some but Not All Recommended Preventive 
Services, GAO-03-958 (Washington, D.C.: September 2003).

[3] We focused this work on the people covered by Medicare who are 65 
or older--about 86 percent of the entire Medicare population. Besides 
this age group, Medicare also covered about 5.8 million disabled 
persons younger than age 65, whom our work did not include. Throughout 
this testimony, except where otherwise noted, we use the term "Medicare 
beneficiaries" to refer only to those beneficiaries age 65 or older.

[4] The Centers for Disease Control and Prevention's (CDC) Behavioral 
Risk Factor Surveillance System asks a range of health questions over 
the telephone, including if respondents received a "routine checkup" 
within the past year. CMS's Medicare Current Beneficiary Survey 
collects self-reported data, including whether respondents have 
received influenza or pneumonia immunizations. CDC's National Health 
and Nutrition Examination Survey (NHANES) collects data on health 
conditions by means of both comprehensive health examinations and 
interviews, where patients self-report information, including whether a 
physician or other health professional has ever told them that they 
have a given health condition. Unlike the other surveys, which take a 
sample of the population, CDC's National Ambulatory Medical Care Survey 
samples physician practices, collecting detailed information about 
office visits, including the major reason for the visit and which 
preventive services were ordered or provided.

[5] "Fee-for-service" is the Medicare arrangement sometimes referred to 
as the original Medicare plan. Under this option, Medicare pays a 
health care practitioner for each visit or procedure received by a 
patient, and a beneficiary can visit any hospital, physician, or health 
care provider who accepts Medicare patients. Medicare pays a set 
percentage of the expenses, and the beneficiary is responsible for 
certain deductibles and coinsurance payments--the portion of the bill 
that Medicare does not pay. Our September 2003 report indicated that 
about 84 percent of Medicare enrollees were in the fee-for-service 
program.

[6] The Medicare Program is divided into three parts. Part A provides 
hospital insurance coverage, and Part B provides coverage for 
supplemental medical insurance benefits, such as the preventive health 
care services discussed above. Part C requires managed care plans 
participating in the Medicare + Choice program to provide all the basic 
benefits covered under Parts A and B.

[7] The new preventive care services requirements appear at Pub. L. No. 
108-27, §§ 611-613, 117 Stat. 2303-2306 (adding sections 1861(s)(2)(W), 
(X), and (Y) to SSA) (to be codified at 42 U.S.C. §§ 1395x(s)(2)(W), 
(X), and (Y).)

[8] Because Medicare's fee-for-service program covers some preventive 
services, such as immunizations and certain cancer screening tests, it 
is possible that some of the nonillness visits in 2000 were to obtain 
such services. In addition, some fee-for-service beneficiaries may be 
paying for nonillness examinations through other means, such as 
employer-provided or other supplemental insurance. According to CMS's 
Medicare Current Beneficiary Survey, in the year 2000 about 41 percent 
of Medicare fee-for-service beneficiaries had insurance from former 
employers to supplement their basic Medicare benefit.

[9] In 2000, data from CMS's Medicare Current Beneficiary Survey also 
showed that 88 percent of Medicare beneficiaries reported that they 
visited a physician at least once that year.

[10] In January 2003, the U.S. Preventive Services Task Force released 
new recommendations for the use of Pap smears to screen for cervical 
cancer. The task force now "recommends against screening women 65 or 
older who have had adequate recent screenings with normal Pap smears 
and are not otherwise at increased risk for cervical cancer."

[11] The source of data for this statement was CDC's NHANES of 1999-
2000. This survey oversampled; that is, it included a larger number of 
persons age 60 and older in the sample, providing for a sample size 
that enabled us to focus our analysis specifically on the Medicare-age 
population for selected conditions.

[12] We confirmed in July 2004 that this CMS demonstration was still in 
the design phase.

[13] The Consolidated Omnibus Budget Reconciliation Act of 1985 
directed CMS (then known as the Health Care Financing Administration) 
to conduct a 4-year demonstration (see Pub. L. No. 99-272, § 9314, 100 
Stat. 82, 194-196 (1986)), which was extended for an additional year by 
the Omnibus Budget Reconciliation Act of 1990, Pub. L. No. 101-508, § 
4164, 104 Stat. 1388, 1388-100.

[14] Donna E. Shalala, Medicare Prevention Demonstration: Final Report, 
RC 87-172 (Washington, D.C.: Department of Health and Human Services, 
1998).

[15] A typical health risk assessment obtains information on 
demographic characteristics (e.g., sex, age); lifestyle (e.g., smoking, 
exercise, alcohol consumption, diet); personal health history; and 
family health history. In some cases, physiological data (e.g., height, 
weight, blood pressure, cholesterol levels) are also obtained, as well 
as a patient's status regarding cancer screens and immunizations.

[16] Southern California Evidence-Based Practice Center/RAND, Health 
Risk Appraisals and Medicare (Baltimore: Centers for Medicare & 
Medicaid Services, 2001). RAND identified 267 articles, unpublished 
reports, and conference presentations, of which 27 contained data that 
project staff deemed necessary to be included as evidence of the 
effectiveness of health risk assessments.

[17] The demonstration's final cost was uncertain at the time our 
report was completed in September 2003. CMS was spending approximately 
$1 million on the developmental work.