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Supporters urge passage of PACE bill as cost‑saving option for frail seniors

2754634 · March 24, 2025
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Summary

Senate File 2755 would allow Minnesota to implement the Program of All‑Inclusive Care for the Elderly (PACE); witnesses said nationwide experience shows high satisfaction and potential cost savings versus nursing homes, and multiple providers signaled readiness to operate programs here.

Senate File 2755, a bill to authorize and implement the Program of All‑Inclusive Care for the Elderly (PACE) in Minnesota, drew broad support from organizations that operate PACE programs in other states and from groups seeking additional options to keep frail, nursing‑home‑eligible seniors at home.

Wayne Olsen of Presbyterian Homes and Services told the committee PACE has a roughly 50‑year history and operates in many states with strong participant satisfaction. He cited three data points: 94% of PACE participants continue to live in their homes rather than institutions; 95% of families would recommend the program; and the average participant receives about 16 transportation trips per month from the program’s care model.

John Tao, who operates a PACE center serving Hmong and Laotian communities in California, described rapid enrollment and culturally tailored outreach that helped participants manage chronic conditions and remain connected to family and community. Eric Nielsen of Volunteers of America, which operates PACE programs in multiple states, said PACE operates in 33 states and serves more than 82,000 participants nationally and that states adopting PACE see reduced hospitalizations, emergency visits and nursing home admissions.

Sponsors said the program can provide coordinated primary care, behavioral health, transport, therapies and social services under a capitated payment model and that actuarial and rate work is underway to adapt a Minnesota implementation. Committee members laid the bill over for further consideration; stakeholders encouraged state action to permit PACE’s cost‑effective alternative to institutional care.