Iowa Department on Aging

 

 

 

 

 

Terry Branstad, Governor
Kim Reynolds, Lt. Governor
Donna Harvey, Director


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Program of All-inclusive Care for the Elderly (PACE)

Jump down to:Overview of PACE | PACE Feasability Study

Programs of All-inclusive Care for the Elderly (PACE) serve people aged 55 and older who live in an established geographic service area, qualify for state nursing home level of care, and can be safely cared for in a community setting at the time of enrollment. Rather than place people in nursing homes, PACE programs provide a comprehensive range of services that enable the people they serve to continue living in the community. PACE programs receive a capitated monthly payment from Medicare and Medicaid in exchange for all health and aging services required to meet the needs of the people they serve. PACE is a permanent provider under the Medicare program and a state option under state Medicaid programs.


Overview of PACE

The PACE concept developed in the early 1970s as a way for San Francisco's Chinatown residents to provide care and services to their elders in a culturally appropriate way. Asian families preferred to have their elders live at home but were worried about their safety during the day. An area social worker proposed a British Day Hospital concept; transporting seniors to a community center during the day and returning them home at night. The center they opened in 1973 was called, "On Lok," which means "peaceful happy abode" in Cantonese.

Providing "one-stop" comprehensive health and social services for its clients, the On Lok program inspired a Medicare and Medicaid demonstration program called PACE in 1987. In 1997, the Balanced Budget Act authorized PACE as a permanent Medicare and Medicaid provider, opening the door to greater expansion of the model. As of 2003, all PACE demonstration programs completed the transition to permanent provider status.

To be eligible to enroll in PACE a person must be 55 years old or older; meet the State's nursing home eligibility requirements, live in a PACE service area, and be able to live independently in the community with the assistance of PACE services at the time of enrollment.

PACE is a fully capitated managed care program, and PACE providers have the flexibility to tailor care and services to meet the unique individual needs of each individual enrollee. Because PACE is financially at risk for all the care and services enrollees need, the clinical and financial incentives for providing high quality care and services are aligned. One result is that care is much more focused around prevention of health status decline so that people can continue to live as independently as possible. A key difference between PACE and other managed care models is that in PACE, the actual providers of care and services are the ones that make the decisions for each person utilizing an interdisciplinary team process. Care is managed for each person taking into account the circumstances of their health, abilities to care for themselves, the complexity of family relationships and participant goals and desires.

PACE programs benefit adults over the age of 55 by providing more consumer choices in long-term care and provide a more flexible and comprehensive menu of services, especially for individuals that qualify for both Medicare and Medicaid. PACE benefits the state by assisting in the goal of re-balancing its long-term care system; by providing a degree of predictability in the states Medicaid budget and by providing economic development opportunities for existing providers of both long-term care and senior housing options.

Additional information related to PACE can be found at www.npaonline.org

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PACE Feasability Study

Explore these links for the final results of the October 2004 Centers for Medicare and Medicaid PACE Market Assessment Report for the State of Iowa:

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