Medicare has made major changes in the past few years: it has added prescription drug coverage and expanded the role of private insurers by authorizing new types of plans and increasing their payment rates. While enhancing the benefits available under Medicare, these changes also raise questions about the cost-effectiveness of the additional payments and how the most vulnerable beneficiaries will be affected. Medicare also is seeking to encourage quality improvement, foster greater coordination of care, promote the use of preventive services, and increase providers' efficiency. The Fund's Program on Medicare's Future is focused on analyzing these changes and developing information and options for improving Medicare. This grant supports strategic direction for the program and the development of new projects, coordination of ongoing work, and dissemination of findings.