Modern Healthcare

PACE has shown path to improved elder care

- By Shawn Bloom Shawn Bloom is president and CEO of the National PACE Associatio­n.

As the number of seniors with longterm service and support needs continues to grow, Medicare and Medicaid are seeking new ways to provide care and services more effectivel­y and efficientl­y. One model, Programs of All-inclusive Care for the Elderly, or PACE, has a successful track record of serving low-income, dual-eligible seniors—the frailest of the frail—since its inception more than 25 years ago.

Now with more than 100 programs in 31 states, PACE is looking to build on its experience and make a significan­t contributi­on toward achieving state and federal goals for dual-eligibles needing longterm support services. But responding to the new needs of state and federal policymake­rs means updating regulation­s and oversight to support innovative models.

PACE came into existence as a way to serve nursing home-eligible elders in the community. The program’s ability to integrate all medically necessary care with services and social support through a bundled, capitated payment system is the key to its success. PACE has demonstrat­ed its ability to control the costs of caring for dual-eligibles in need of long-term support, while keeping them out of nursing homes. More than 90% of PACE enrollees reside in a community setting.

Today, PACE organizati­ons, potential sponsors and states interested in expanding access are limited by a regulatory approach that needs to be updated. While federal regulation­s governing PACE were designed to ensure the successful transition of PACE from a demonstrat­ion program to a permanent part of Medicare, they have not kept up with today’s innovation­s. Many PACE organizati­ons are eager to expand their service areas, engage community physicians and utilize alternativ­e-care settings, yet current regulation­s stymie these efforts.

As a result, much of the promise of PACE is being left untapped. PACE is best positioned to help states and the federal government achieve their goals of better-integrated, more cost-effective support, in comparison to Medicaid managedcar­e plans. According to a recent Truven Health Analytics report, states that have Medicaid managed-care plans keep less than half of their nursing home-eligible enrollees out of nursing homes.

If the goal of care innovation for this vulnerable population is to improve results, then we need a federal and state regulatory environmen­t that can build on and expand the role of PACE through growth, innovation and accountabi­lity.

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