DHS outlines PACE option for Minnesota, highlights implementation, staffing and fiscal questions

The House Human Services Finance and Policy Committee heard a presentation from the Minnesota Department of Human Services on the Program of All‑Inclusive Care for the Elderly (PACE), a federal Medicare‑Medicaid model the department says would offer a site‑based, fully integrated option for people age 55 and older.

Assistant Commissioner Natasha Merz of DHS said PACE “is a model of delivering home and community based services for people age 55 and older” that combines Medicare, Medicaid and long‑term services and supports through a single capitation payment. She added, “PACE can’t result in more spending than Medicare or Medicaid would otherwise spend on that person were they not enrolled in PACE.”

The report submitted to the committee summarizes two analyses requested by the Legislature: an implementation analysis and an actuarial analysis. DHS contracted with a consulting firm (Barry Dunn) for implementation considerations and with Milliman for the actuarial work. Merz said the implementation analysis and actuarial report look at provider readiness, state‑level program criteria, readiness reviews required by the Centers for Medicare & Medicaid Services (CMS), and practical questions such as enrollment choice and involuntary disenrollment.

Why it matters

DHS told the…