PACE Expanded Act

To improve access to the Program of All-Inclusive Care for the Elderly, and for other purposes. 1. Short title This Act may be cited as the Program of All-inclusive Care for the Elderly Expanded Act PACE Expanded Act 2. Anytime enrollment in PACE (a) In general (1) Any time enrollment and effective date Section 1894(c)(5) of the Social Security Act ( 42 U.S.C. 1395eee(c)(5) (C) Any time enrollment and effective date of enrollment (i) Any time enrollment A PACE program eligible individual may enroll in a PACE program at any time during a month. (ii) Effective date Subject to clause (iii), the enrollment of a PACE program eligible individual in a PACE program shall be effective on the date the PACE provider operating the PACE program receives an enrollment agreement signed by such PACE program eligible individual with respect to such PACE program. (iii) Special rule in the case of dual eligible beneficiaries In the case of a PACE program eligible individual who is eligible for benefits under this title and title XIX, clause (i) shall only apply if the State in which such individual resides has made an election under section 1934(c)(5)(C) to permit PACE program eligible individuals to enroll in a PACE program at any time during a month in such State. . (2) Prorated payments Section 1894(d) of the Social Security Act ( 42 U.S.C. 1395eee(d) (4) Prorated payments In the case of a PACE program eligible individual enrolled in a PACE program operated by a PACE provider with an enrollment effective date that is not the first day of a month, the capitation amount that would otherwise be made under this subsection to the PACE provider for such individual for the first month in which such individual is so enrolled shall be prorated accordingly. . (b) Conforming amendments (1) Anytime enrollment and effective date Section 1934(c)(5) of the Social Security Act ( 42 U.S.C. 1396u–4(c)(5) (C) State option to permit any time enrollment and effective date of enrollment (i) Any time enrollment A State may elect to permit a PACE program eligible individual to enroll in a PACE program at any time during a month. (ii) Effective date Pursuant to a State election made under clause (i), the enrollment of a PACE program eligible individual in a PACE program shall be effective on the date the PACE provider operating the PACE program receives an enrollment agreement signed by such PACE program eligible individual with respect to such PACE program. . (2) Prorated payments Section 1934(d) of the Social Security Act ( 42 U.S.C. 1396u–4(d) (3) Prorated payments If a State elects under subsection (c)(5)(C) to permit enrollment at any time during a month, in the case of a PACE program eligible individual enrolled in a PACE program operated by a PACE provider with an enrollment effective date that is not the first day of a month, the State shall prorate the capitation amount that would otherwise be made under this subsection to the PACE provider for such individual for the first month in which such individual is so enrolled. . (c) Effective date The amendments made by this section shall take effect on January 1, 2025. 3. PACE site approval and expansion (a) In general Sections 1894(e) and 1934(e) of the Social Security Act ( 42 U.S.C. 1395eee(e) (8) Authority to submit applications at any time; timely consideration of applications (A) Authority to submit applications at any time (i) New PACE provider status An entity that seeks to become a PACE provider may submit an application for PACE provider status at any time. (ii) Service area expansion and addition of PACE center site To the extent the Secretary requires a PACE provider to submit an application to expand its service area or to add a PACE center site (or both), a PACE provider may submit such an application at any time, subject to the requirements of section 460.12(d) of title 42, Code of Federal Regulations (relating to the first trial period audit), or any successor regulation. (iii) Assurances An application for PACE provider status under clause (i) or to add a PACE center site under clause (ii) shall include the following assurances: (I) An assurance that the required members of the interdisciplinary team are employees or contractors of the proposed PACE center or will be employees or contractors of the proposed PACE center by the time the PACE center becomes operational. (II) An assurance that— (aa) the PACE provider’s contracts for all contractors and contracted personnel will be executed by the time the proposed PACE center becomes operational; and (bb) executed contracts may include provisions for staffing levels commensurate with enrollment to full projected census. (B) Deemed approval An application described in subparagraph (A) shall be deemed approved unless the Secretary, within 45 days after the date of the submission of the application to the Secretary, either denies such request in writing or informs the applicant in writing with respect to any additional information that is needed in order to make a final determination with respect to the application. After the date the Secretary receives such additional information, the application shall be deemed approved unless the Secretary, within 45 days of such date, denies such request. . (b) Effective date The amendments made by subsection (a) shall take effect on January 1, 2025. 4. PACE pilot Section 1115A(b)(2) of the Social Security Act ( 42 U.S.C. 1315a(b)(2) (1) in subparagraph (B), by adding at the end the following new clause: (xxviii) National testing of a model for expanded eligibility for the Program of All-Inclusive Care for the Elderly as described in subparagraph (D). ; and (2) by adding at the end the following new subparagraph: (D) National testing of model for expanded eligibility for the program of all-inclusive care for the elderly In the case where the Secretary selects the model described in clause (ii) of this subparagraph for testing pursuant to clause (xxviii) of subparagraph (B), the following shall apply: (i) National testing (I) In general Subject to subclause (II), the Secretary shall design a demonstration that allows each PACE provider with an executed PACE agreement to develop and submit to the Secretary an application to begin testing expanded PACE eligibility for high-need and high-cost populations that are not otherwise eligible to participate in a PACE program within 1 year of the date on which the model is selected. (II) No effect on ongoing models or demonstration projects Nothing in this subparagraph shall affect the testing of any model under this subsection or any demonstration project under this Act that is implemented prior to the date of the enactment of this subparagraph. (ii) Model described The model described in this clause seeks to increase access to quality, integrated, care for high-need, high-cost individuals who are not otherwise eligible to participate in a PACE program in order to improve health and reduce cost. Under this model, participating PACE providers would— (I) be paid fixed, monthly capitated rates from both Medicare and the applicable State Medicaid agency for all services provided to each enrollee fitting the criteria of the PACE provider’s designated population; (II) partner with non-PACE providers, such as Area Agencies on Aging, Centers for Independent Living, local hospitals, and non-hospital providers such as physicians, behavioral health providers and other community-based organizations to effectively reach the PACE provider’s selected population; (III) adapt the PACE program model of care to appropriately serve the PACE provider’s selected population to integrate care and meet the unique needs of said population; and (IV) if the PACE provider is located in a State that has not yet served the selected population through a PACE program under section 1934, receive an up-front fixed payment to coordinate with the State to develop a capitated payment rate, with appropriate risk adjustment, for the PACE provider’s selected population. (iii) Requirements for participating PACE organizations In order to participate in the model, a PACE provider must— (I) conduct a survey or needs assessment of their service area to determine the most appropriate population with which to expand their services; (II) receive prior approval from the applicable State Medicaid agency to submit an application to participate in the model; and (III) following such survey or needs assessment and approval from the applicable State Medicaid agency, submit and receive approval of an application of expansion from the Secretary. (iv) Application A PACE provider’s application to participate in this model shall include the following information: (I) Results of the survey or needs assessment of their service area under clause (iii)(I) and an explanation of the expanded population the PACE organization will serve. (II) The types of services that the expanded population will require and the PACE provider's plan to implement these services. (III) How the PACE provider will achieve engagement and enrollment of the new population in the model, including how it will partner with non-PACE providers in the applicable service area. (IV) How the expanded population’s participation in the PACE program is intended to improve quality of care and health outcomes under the model. (V) Certification that the applicable State Medicaid agency has approved the PACE provider's application to participate in the model. (VI) Plans to coordinate with the State Medicaid agency to develop an initial capitated rate with appropriate risk adjustment. (VII) Plans for the PACE provider and the State Medicaid agency to review and adjust the Medicaid capitated rate on a biennial basis, as needed. (VIII) Any other information required by the Secretary. (v) Technical assistance The Secretary shall provide, or designate an entity to provide, technical assistance to participating PACE providers as they apply for and implement the model. (vi) Accounting for uncertainty In order for implementing PACE providers to receive unanticipated additional resources needed to implement the model, the Secretary shall establish procedures for the implementing PACE providers to submit to the Secretary a request for additional resources. (vii) Monitoring outcomes The Secretary, in conjunction with PACE providers and in consultation with States that have elected to expand PACE program eligibility under section 1934(l), shall develop a plan to— (I) annually monitor outcomes under the model, which may include financial, quality, access, and utilization outcomes; (II) annually monitor the health outcomes of the PACE provider’s expanded population; and (III) any other outcomes as determined by the Secretary. (viii) Report to congress Not less frequently than every 3 years (for the duration of the implementation of the model under this subparagraph), the Secretary shall submit to Congress a report on the implementation of the model under this subparagraph. The report shall include demographic information on the populations served under the demonstration, best practices for future implementation efforts and any other information the Secretary determines appropriate together with recommendations for such legislation and administrative action as the Secretary determines appropriate. (ix) Funding The Secretary shall allocate funds made available under subsection (f)(1) to design, implement, evaluate, and report on the model described in clause (ii) in accordance with this subparagraph. . 5. Coordination with the Federal Coordinated Health Care Office Section 1934 of the Social Security Act ( 42 U.S.C. 1396u–4 (m) Coordination with the Federal Coordinated Health Care Office (1) State coordination with FCHCO The Director of the Federal Coordinated Health Care Office established under section 2602 of the Patient Protection and Affordable Care Act shall serve as a point of contact between State administering agencies and the Federal Government for purposes of implementing and operating a PACE program in a State, and shall coordinate with other relevant offices and staff of the Centers for Medicare & Medicaid Services involved in carrying out this section. (2) Annual report Not later than January 1, 2025, and annually thereafter, the Director of the Federal Coordinated Health Care Office shall submit to Congress a report on the demographics of the populations served by PACE programs operated under this section and section 1894. . 6. Evaluation of effectiveness of PACE program in rural and underserved areas (a) In general The Assistant Secretary for Planning and Evaluation of the Department of Health and Human Services (referred to in this section as the Assistant Secretary 42 U.S.C. 1395eee (1) Reductions in hospitalizations and re-hospitalizations among program beneficiaries. (2) Reductions in emergency department use among program beneficiaries. (3) Reductions in long-term nursing facility use among program beneficiaries. (4) Reductions in mortality among program beneficiaries. (5) Achieving lower rates of functional decline, and improvements in reported health status and quality of life among program beneficiaries. (6) Reductions in the total cost of care among program beneficiaries. (7) The effect of activities supported under the program on the local area serviced by the program, including on the health and well-being of unpaid and family caregivers of program beneficiaries. (8) Improvements in quality of life among program beneficiaries. (b) Report Not later than 60 months after the date of enactment of this Act, the Assistant Secretary shall submit a report containing the results of the evaluation required under subsection (a), an analysis of which elements of the program for all-inclusive care for the elderly under sections 1894 and 1934 of the Social Security Act ( 42 U.S.C. 1395eee (1) The Special Committee on Aging of the Senate. (2) The Committee on Finance of the Senate. (3) The Committee on Health, Education, Labor, and Pensions of the Senate. (4) The Committee on Ways and Means of the House of Representatives. (5) The Committee on Energy and Commerce of the House of Representatives. (c) Partners In conducting the evaluation and completing the report required under this section, the Assistant Secretary shall provide an opportunity for partners and persons that have participated in the program for all-inclusive care for the elderly under sections 1894 and 1934 of the Social Security Act ( 42 U.S.C. 1395eee

Summary: Program of All-Inclusive Care for the Elderly Expanded Act or the PACE Expanded Act This bill modifies requirements regarding Programs of All-Inclusive Care for the Elderly (PACE). PACE is a program under Medicare and Medicaid that provides in-home and community services for certain individuals as an alternative to nursing home care. The bill allows Medicare beneficiaries to enroll in a PACE program at any time and provides states with the option to allow Medicaid beneficiaries to do the same. Entities may also apply to become PACE providers at any time, upon specified assurances relating to staffing and other requirements. The bill also (1) allows the Center for Medicare and Medicaid Innovation to test a model for expanded PACE eligibility that targets high-need and high-cost populations, and (2) requires an evaluation of the effectiveness of PACE in rural and underserved areas.