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Answers to Questions for the Record Following a Hearing by the House Committee on the Budget on CBO's Estimates of the Budgetary Effects of the Center for Medicare & Medicaid Innovation 1 (October 28, 2016)

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                   , ;                 /      /OCTOBER 28, 2016





                     Answers to Questions for the Record
      Following a Hearing by the House Committee on the Budget on
               CBO's Estimates of the Budgetary Effects of the
                 Center for Medicare & Medicaid Innovation



On September 7, 2016, the House Committee on the Budget convened a hearing at which
Mark Hadley, Deputy Director of the Congressional Budget Office, testified about CBO's estimates
of the budgetary effects of the Center for Medicare & Medicaid Innovation's activities. After the
hearing, Chairman Price and other Members of the Committee submitted questions for the record.
This document provides CBO's answers.

Chairman Price
Question. How often does the Congressional Budget Office (CBO) communicate with the
Center for Medicare & Medicaid Innovation (CMMI) about the status of model tests? Do
these conversations include regular updates of model savings estimates? What kind of
information does CBO receive from CMMI on their work plan to inform scoring of
legislative proposals? Is this information also available to Congress on a routine basis? If not,
how is it possible for Congress to develop effective legislative proposals outside of areas where
CMMI is planning demonstrations? How does CBO consider the likelihood that CMMI's
work plan could change, for example, under a new administration?

Answer. CBO relies primarily on information obtained from CMMI's website to monitor the
status of demonstrations. The center's website describes the basic features of demonstrations
that are under way or that have been announced and gives an update on the status of each.
CBO pays particular attention to evaluation reports, which are typically prepared by
independent contractors and contain estimates of federal savings. Evaluation reports are not
yet available for many demonstrations, however, and results from those that are available
reflect only the early experiences of some demonstrations. CBO's ability to monitor CMMI's
activities in the future will depend on how much information the center releases about
demonstration evaluations and how quickly that information is released. Conversations with
CMMI staff concerning the status of particular demonstrations occur infrequently.

CMMI does not share detailed information about its future plans with CBO. To monitor
CMMI's plans for future demonstrations, CBO routinely gathers information from publicly
available sources such as CMMI's Requests for Information-in which the center solicits
input from providers and other stakeholders about the design of demonstrations under
consideration-as well as from public statements and presentations by Administration
officials. CBO also engages in conversations with staff at CMMI and various stakeholders.

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