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Congressman Ryan Costello

Representing the 6th District of Pennsylvania

House Passes PACE Innovation Act

October 21, 2015
Press Release

Washington, D.C. – Today, the U. S. House of Representatives unanimously passed S. 1362: the PACE Innovation Act. Following the passage of the bill, Congressman Ryan Costello (PA-06), a cosponsor of the House version of the bill, H.R. 3234, released the following statement:

“In Pennsylvania, our state-level PACE program – known as LIFE (Living Independence for the Elderly) – has enabled elderly Pennsylvanians to receive quality comprehensive care without having to leave the comfort of their homes or communities,” said Congressman Costello. “The PACE Innovation Act is a sensible step towards bringing this successful and innovative model to other populations of Americans with chronic or long-term care needs including medical care and prescription drug services. By enacting this bill into law, we are ensuring PACE has the flexibility to evolve and meet the needs of individuals, while promoting independence, and raising the quality of life for seniors and younger individuals with disabilities. I encourage the President to sign it without delay.”


The Program of All-Inclusive Care for the Elderly (PACE) is an integrated care program that provides comprehensive long-term services and support to individuals who are ages 55 and older who require an institutional level of care, many of whom are eligible for both Medicare and Medicaid and are known as dual-eligible beneficiaries.

Setting up a PACE program is optional for states under Medicaid. In 2014, 31 states had PACE programs. PACE providers receive capitated payments from both Medicaid and Medicare to cover an enrollee’s benefits. In many cases, the PACE program enables enrollees to receive services through an adult day health center rather than through an institution such as a nursing facility. S.1362 expands CMMI’s authority to test new and innovative ways of administering the PACE program.

S. 1362 amends the Social Security Act to allow the Center for Medicare & Medicaid Services (CMS) to test and improve certain aspects of PACE in an effort to give the programs the flexibility to most efficiently and effectively utilize funding in ways otherwise not possible due to the current program rules.