HF1937
Program for All-Inclusive Care for the Elderly service delivery system implemented.
Legislative Session 94 (2025-2026)
Related bill: SF2755
AI Generated Summary
This bill proposes the establishment and implementation of the Program of All-Inclusive Care for the Elderly (PACE) in Minnesota as a service delivery system for elderly individuals who require long-term care. The bill includes amendments to existing statutes and the addition of new sections to Minnesota’s laws governing human services.
Key Provisions of the Bill:
Authorization for Alternative Healthcare Services (Section 1)
- Allows the Commissioner of Human Services to implement demonstration projects for integrated services for elderly persons and those with disabilities.
- Seeks federal approval to combine Medicare and Medicaid payments to facilitate these demonstrations.
- Authorizes contracts with Medicare-approved special needs plans to provide Medicaid services.
- Allows counties and managed care organizations to serve specific populations under these integrated services.
Establishment of PACE (Section 2)
- Officially codifies PACE in Minnesota to provide comprehensive medical and non-medical services for eligible elderly individuals.
- Defines eligibility, aligning with federal criteria (e.g., age 55+ and Medicaid eligibility with a need for long-term care).
- Specifies that individuals enrolled in PACE will receive all necessary Medicare and Medicaid services through PACE providers.
- Grants authority to the Commissioner of Human Services to oversee and coordinate services under PACE.
Enrollment and Disenrollment
- Eligible individuals may voluntarily enroll in PACE.
- Enrollments exclude eligibility for other Medicaid, Medicare, or MinnesotaCare payments.
- Enrollees can disenroll at any time.
PACE Service Delivery and Provider Contracts
- Services to be provided primarily in community settings (like adult day centers) or at home, reducing reliance on institutional care.
- Health and social services must be coordinated to improve quality of life and reduce hospital admissions.
- Contracts with not-for-profit PACE organizations will be established based on state and federal guidelines.
- Establishes a competitive bidding process for selecting PACE providers.
Funding and Payment Rates
- Requires the Commissioner to develop and implement Medicaid payment rates for PACE providers by January 1, 2027.
- Payment rates must comply with federal regulations and should not exceed what Medicaid would have paid for the same beneficiary under traditional services.
- Capitated (fixed) payments to PACE providers to ensure financial sustainability.
Commissioner’s Responsibilities
- Develop contracts for PACE providers, set regulations, and monitor compliance.
- Establish a state plan amendment for PACE by October 1, 2025, for federal approval.
- Oversee financial risk management for PACE providers.
Performance Withholds for Managed Care Plans (Section 3)
- Expands managed care performance measures by including PACE within utilization reduction targets for emergency room visits, hospital admissions, and rehospitalizations.
- Requires incremental reductions in hospital usage to improve care quality and cost-effectiveness.
Implementation Timeline:
- By December 31, 2025 – Competitive bidding process for PACE providers.
- By June 30, 2026 – PACE provider operations must be fully established.
- By January 1, 2027 – PACE services must begin.
Overall Impact:
- Expands integrated, community-based healthcare options for elderly individuals needing long-term care.
- Seeks to reduce reliance on costly institutional care (hospitals and nursing homes).
- Establishes financially sustainable models through capitated payment systems for PACE providers.
- Aligns with federal Medicare-Medicaid integration efforts, enhancing coordination of services for dual-eligible populations.
This bill represents a significant step toward expanding coordinated care for elderly Minnesotans, allowing them to receive comprehensive services while remaining in their communities.
Past committee meetings
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Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 05, 2025 | House | Action | Introduction and first reading, referred to | Human Services Finance and Policy |
Meeting documents
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Citations
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