fits or education efforts should be added to the 
medicare program, including discussions of 
quality of life, translating the applied research 
results into a benefit under the medicare pro-
gram, and whether each additional benefit 
would be a cost-effective benefit or a cost-saving 
benefit for each proposed addition; and 
(E) how best to increase utilization of ex-
isting and recommended health promotion and 
disease prevention services, such as an edu-
cation and public awareness campaign, pro-
viding financial incentives for providers of care 
and medicare beneficiaries, or utilizing other 
administrative means. 
(2) ANNUAL REPORT.—Not later than Decem-
ber 31, 2005, and annually thereafter through 2007, 
the Secretary, in consultation with the Working 
Group, shall submit a report to Congress on the 
evaluation conducted under paragraph (1), together 
with such recommendations for such legislation and 
administrative actions as the Secretary considers ap-
propriate. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated for the purpose of car-
rying out this section $50,000,000 for each of fiscal years 
2004, 2005, 2006, and 2007. 
SEC. 104. DISEASE SELF-MANAGEMENT DEMONSTRATION 
PROJECTS. 
(a) DEMONSTRATION PROJECTS.—
(1) IN GENERAL.—The Secretary shall conduct 
demonstration projects for the purpose of promoting 
disease self-management for conditions identified by 
the Working Group under section 102(c)(2) for tar-
get individuals (as defined in paragraph (2)). 
(2) TARGET
INDIVIDUAL
DEFINED.—In this 
section, the term ‘‘target individual’’ means an indi-
vidual who—
(A) is at risk for, or has, 1 or more of the 
conditions identified by the Working Group 
under section 102(c)(2); and 
(B) is enrolled under the original medicare 
fee-for-service program under parts A and B of 
title XVIII of the Social Security Act (42 
U.S.C. 1395c et seq.; 1395j et seq.) or is en-
rolled under the Medicare+Choice program 
under part C of title XVIII of such Act (42 
U.S.C. 1395w–21 et seq.). 
(b) NUMBER; PROJECT AREAS; DURATION.—
(1) NUMBER.—Not later than 2 years after the 
date of enactment of this Act, the Secretary shall 
implement a series of demonstration projects to 
carry out the purpose described in subsection (a)(1). 
(2) PROJECT AREAS.—The Secretary shall im-
plement the demonstration projects described in 
paragraph (1) in urban, suburban, and rural areas. 
(3) DURATION.—The demonstration projects 
under this section shall be conducted during the 3-
year period beginning on the date on which the ini-
tial demonstration project is implemented. 
(c) REPORT TO CONGRESS.—
(1) IN GENERAL.—Not later than 18 months 
after the conclusion of the demonstration projects 
under this section, the Secretary shall submit a re-
port to Congress on such projects. 
(2) CONTENTS
OF
REPORT.—The report re-
quired under paragraph (1) shall include the fol-
lowing: 
(A) A description of the demonstration 
projects. 
(B) An evaluation of—
(i) whether each benefit provided 
under the demonstration projects is a cost-
effective benefit or a cost-saving benefit;
(ii) the level of the disease self-man-
agement attained by target individuals 
under the demonstration projects; and 
(iii) the satisfaction of target individ-
uals under the demonstration projects. 
(C) Recommendations of the Secretary re-
garding whether to conduct the demonstration 
projects on a permanent basis. 
(D) Such recommendations for legislation 
and administrative action as the Secretary de-
termines to be appropriate. 
(E) Any other information regarding the 
demonstration projects that the Secretary de-
termines to be appropriate. 
(d) FUNDING.—The Secretary shall provide for the 
transfer from the Federal Hospital Insurance Trust Fund 
under section 1817 of the Social Security Act (42 U.S.C. 
1395i) an amount not to exceed $30,000,000 for the costs 
of carrying out this section.