Kentucky is implementing a Pilot Diabetes Disease Management for Medicaid enrollees. The project will serve people in Bell and Floyd Counties, which together have 6,100 residents with diabetes—the highest incidence in the state. During the first phase of the project, the Medicaid program will contact health care providers and patients to collect health information and provide educational information to encourage patients to take a more active role in their care. In the second phase, nurses will contact patients to determine their progress and what other interventions may be needed. The results of the pilot will help determine whether the state pursues a broader, statewide disease management program. See Stretching State Health Care Dollars: Targeted Care Management to Enhance Cost-Effectiveness.