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Digital Health Executive Update
Executive Update: CMS
Demonstration Projects and Government Reimbursement Policies
Table of Contents
This executive update provides an update on the reimbursement
policy trends from the Center for Medicare and Medicaid (CMS) regarding
digital health applications and services. It analyzes the status of key
Medicare demonstration projects and their impact. The report also
examines state-run Medicaid program’s stance on emerging digital health
technologies.
“The government reimbursement policy remains a sore spot
for the growth of the digital health industry,” said
Harry Wang,
Senior Analyst with Parks Associates. “Technology vendors should learn
from the experience of the disease management industry with the Medicare
Health Support Pilot program and find a better way to engage government
at both the federal and state levels and eventually convince them of the
value of technology to the U.S. healthcare industry.”

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The Executive Update is a concise, executive-level summary of
the current state of the market, evolutionary path, and the
implications for companies doing business in this space.
Contents
The Bottom Line
1.0 Executive Summary
2.0 Update on the
Medicare Reimbursement Policy
2.1
Medicare Health Support (MHS) Pilot Program
2.2 Medicare Medical Home Demonstration (MMHD) Project
2.3 Other Medicare-sponsored Demonstration Projects
2.3.1 Care Management for
High-Cost Beneficiaries Demonstration
2.3.2 Medicare Physician Group
Practice Demonstration (PGP)
2.3.3 Medicare Senior Risk
Reduction Demonstration
2.4 Most Recent Legislative Efforts and Policies
2.5 Medicare Policy Analysis
3.0 Reimbursement Policy
from State Medicaid Programs
3.1
State Telemedicine Programs
3.2 State Medicaid Policy Trends
4.0 Implications and
Recommendations
4.1
Medical Device Manufacturers
4.2 Health Service Providers
List of Figures
DM Companies
Participating in MHS Project
Qualifications for Being Recognized as Medical Home
Practice
Reimbursement Rate Determinants for MMHD
Participating Companies in CMHCBD Project
State Telemedicine Networks that Cover
Store-and-Forward Services
List of State Medicaid Waiver Programs
Attributes
Authored by Harry Wang
Executive Editor: Tricia Parks
Published by Parks Associates
© July 2008 Parks Associates Dallas, Texas 75230
All rights reserved. No part of this book may be
reproduced, in any form or by any means, without
permission in writing from the publisher.
Printed in the United States of America.
Disclaimer: Parks Associates
has made every reasonable effort to ensure that all
information in this report is correct. We assume no
responsibility for any inadvertent errors.
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