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As required under the Balanced Budget Act of 1997, the U.S. Secretary of Health and Human Services commissioned the Medicare Coordinated Care Demonstration to pilot and evaluate care coordination programs in the Medicare fee-for-service setting. The Centers for Medicare & Medicaid Services (CMS) contracted with Mathematica to evaluate the Medicare Coordinated Care Demonstration, which tested whether care coordination and disease management programs: (a) lower Medicare expenditures, or (b) increase the quality of health care services and beneficiary and provider satisfaction without increasing expenditures for beneficiaries with chronic illnesses.