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Medicare underpayment for Diabetes Prevention Program: implications for DPP suppliers.

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  • 1Office of Community & Population Health, Montefiore Health System, 3514 Dekalb Ave, Bronx, NY 10467.

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Summary

Medicare reimbursements for the Diabetes Prevention Program (DPP) do not cover program costs. The cost of delivering DPP significantly exceeded reimbursement, even with improved outcomes, highlighting a need for adequate financial support.

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Area of Science:

  • Health Services Research
  • Public Health Interventions
  • Healthcare Economics

Background:

  • The Diabetes Prevention Program (DPP) is an evidence-based intervention to prevent type 2 diabetes.
  • Understanding the financial viability of DPP delivery is crucial for its widespread implementation.

Purpose of the Study:

  • To determine if Medicare reimbursements adequately cover the costs of delivering the Diabetes Prevention Program (DPP).

Main Methods:

  • A retrospective modeling study utilized a microcosting approach to calculate DPP delivery costs for over 300 patients at Montefiore Health System (MHS).
  • Medicare reimbursement was estimated based on program attendance and weight loss outcomes, with additional modeling for national benchmark outcomes.

Main Results:

  • The 1-year cost to deliver DPP was $553 per participant, with direct instruction and patient outreach being the most expensive components.
  • Estimated Medicare reimbursement based on MHS outcomes was $108 per patient.
  • Reimbursement increased to $190 per patient when modeled with national average outcomes, still falling short of costs.

Conclusions:

  • In a large urban health system, the costs of delivering the DPP substantially exceeded Medicare reimbursement.
  • Documenting DPP delivery costs is essential for informing providers, payers, and advocating for improved reimbursement rates.