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The program, now in its third year, is proving popular. More than 43,000 people were enrolled as of June, up from 24,000 a year before. One reason for the jump: the income test for eligibility was relaxed in February to include people whose income was 500 percent of the poverty level--about $54,000 for a single person and $110,000 for a family of four. The program costs San Francisco about $280 per person per month.

How are the results? Hospital admissions of plan members have dropped, and the average stay for those who wind up in the hospital has been cut almost in half, Varney reports. Those changes suggest chronic illnesses, such as diabetes, asthma and hypertension, are being managed better, reducing the need for crisis care.