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A variant of the Health Outcomes Survey, the Medicare Health Outcomes Survey-Modified (HOS-M) is a brief mixed mode annual survey (mail with telephone followup) specifically designed to collect functional status information from enrollees in the Program of All Inclusive Care for the Elderly (PACE) organizations or in the dually eligible beneficiaries demonstrations. CMS uses the HOS-M results to adjust Medicare capitation rates paid to these plans, taking the frailty of the enrollees into account. The frailty adjuster is applied in conjunction with the CMS-Hierarchical Coexisting Condition model and is based on activities of daily living (ADLs) limitations. After a brief description of the HOS-M and the PACE program, we present the results from the 2006 HOS-M to describe the health status of the PACE enrollees that participated in the survey.