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Committee Backs Pilot Approach to Bring PACE Program to Minnesota
Summary
House File 19-37 would authorize a modest pilot of PACE (Program of All-Inclusive Care for the Elderly) with one metro and one non-metro contract and up to 500 participants; supporters cited better outcomes and capitation cost controls, while insurers urged a pilot model and annual reporting.
Representative Breyer introduced House File 19-37 and asked the committee to adopt an amendment that scopes the bill to a pilot program rather than full-scale statewide implementation. The committee adopted the A26 amendment to limit the initial rollout.
Proponents described PACE as a federally authorized, capitated model that coordinates Medicare and Medicaid services for nursing-home-eligible older adults who can remain safely in the community. Eric Nelson, regional vice president of PACE operations for Volunteers of America, told the committee PACE covers Medicare Parts A, B and D and Medicaid long-term care benefits and operates on a capitated payment model: "So costs are capped, if you will... anything above that is our responsibility," he said, explaining why the model includes financial incentives for cost containment and care management.
The bill would authorize contracts with two PACE organizations (one in the seven‑county metro and one outside the metro area) and limit participation to up to 500 eligible participants meeting federal requirements. Chelsea Olsen of the Minnesota Council of Health Plans urged a pilot approach with annual reporting and collaboration to ensure quality and to evaluate how PACE compares to existing state models (including MSHO).
Committee members asked about evaluation methods, control or comparison groups and what would happen if costs rose after five years. Proponents said a pilot would allow the state to gather operational and outcome data before deciding on longer-term implementation. The committee laid the bill over for further consideration.
