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Managing capitation for older adults or individuals with chronic disease is a balancing act. Without question, provider organizations face a greater challenge structuring financial risk arrangements to meet the needs of members who require more tests and procedures than younger, healthier individuals. A study1 by Xiao Xu, PhD, a research investigator in the department of OB/GYN at the University of Michigan in Ann Arbor, and colleague Gail A. Jensen, PhD, of Wayne State University in Detroit, affirms that providers are meeting that challenge for near-elderly individuals-those aged 55-64-who are enrolled in HMOs.