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The Honorable J. Dennis Hastert Speaker of the House of Representatives Washington, D.C. 20515 Dear Mr. Speaker: Enclosed for the consideration of the Congress is the Administration's draft bill, the "Pediatric Asthma Demonstration Act of 1999". The bill supports the President's Budget for FY 2000. The bill would provide $50 million for the establishment of a pediatric asthma demonstration designed to improve health outcomes for certain low-income children suffering from asthma and to develop improved methods for prevention and treatment of pediatric asthma. This funding would be available for competitive grants to States to test disease management approaches including, but not limited to, those based on the National Asthma Education and Prevention Program Expert Panel Report-2: Guidelines for the Diagnosis and Management of Asthma, 1997 (the "NIH Clinical Practice Guidelines"), to identify and treat asthma in children enrolled in Medicaid or the Children's Health Insurance Program (CHIP). States would be permitted to use grant funds for activities including (1) collection of data and development of baselines on pediatric asthma; (2) development and application of treatment outcome measures; (3) development of innovative pediatric asthma disease management programs such as those based on the NIH Clinical Practice Guidelines; (4) education and training of health care providers participating in Medicaid and CHIP in implementation of the most effective disease management strategies such as those based on the NIH Clinical Practice Guidelines; and (5) outreach and education for children with asthma and their families and caregivers. Asthma is one of the most common and costly diseases in the United States. The number of asthma sufferers has more than doubled in the last two decades and now affects more than 5 percent of the U.S. population. More than 4 million who suffer from this disease are children. The need to respond is increasingly urgent. We urge the Congress to give the draft bill its prompt and favorable consideration. The Omnibus Budget Reconciliation Act (OBRA) requires that all