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Exploring the Role of the State Medicaid Agency in the Program of All-Inclusive Care for the Elderly: Recommendations and Updated Implications

The Program of All-Inclusive Care for the Elderly (PACE) model provides integrated care to adults ages 55 and older who meet nursing facility level-of-care criteria and can live safely in the community. Findings from the June 2025 report to Congress identified questions related to transparency in state and federal oversight of PACE compliance and quality.

At the April 2026 Commission meeting, staff presented three policy options to the Commission that address two challenges identified during the document review and stakeholder interviews: (1) overlap and lack of coordination in federal and state audit activities, and (2) the limited availability of information on PACE program quality and performance. At this meeting, staff presented final recommendation language, as well as updated estimates of the recommendations’ effect on federal direct spending from the Congressional Budget Office.