New Bill Would Make PACE Mandatory Under Medicaid, Spur Provider Growth
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Reps. Debbie Dingell and John Moolenaar introduced the bipartisan PACE Access Improvement Act on Sept. 24. It would make PACE a mandatory Medicaid service, allow enrollment to take effect any day of the month and ease limits on provider expansion, but the bill is not expected to pass by the end of 2026.

Reps. Debbie Dingell, a Michigan Democrat, and John Moolenaar, a Michigan Republican, introduced the PACE Access Improvement Act on Sept. 24, a bill that would make the Program of All-inclusive Care for the Elderly (PACE) a mandatory Medicaid service in every state and ease restrictions on enrollment and provider growth. The proposal could widen access to a model that provides medical and social services to eligible older adults who need nursing home-level care while living at home, but its prospects for passage this year are uncertain.

The bill would change PACE from an optional Medicaid program to a mandatory one. According to the National PACE Association, PACE is currently offered in 33 states and the District of Columbia, with 204 locations. Under the proposal, states that already have at least one PACE provider would have 180 days after enactment to comply with the new requirements. States without a PACE provider would have three years.

The measure would also let PACE enrollment take effect at any time during the month, instead of generally beginning on the first day of the month after a provider receives an agreement. It would repeal certain marketing restrictions and remove numerical limits on PACE program agreements, changes intended to ease barriers to opening or expanding organizations. These are provisions of a proposed bill, not changes to current policy.

Supporters include the National PACE Association, the Alzheimer’s Association, the Alzheimer’s Impact Movement and the American Association on Health and Disability. Tech-enabled provider Seen Health also backs the bill. Its co-founder and CEO, Xing Su, told Home Health Care News that making it easier for programs to enroll people and open centers could help providers reach more communities.

At a glance
announcementWhen: Introduced Sept. 24, 2026; further cong…
The developmentTwo Michigan lawmakers introduced a bill to make PACE mandatory under Medicaid and remove several barriers to enrollment and provider expansion.

How Medicaid Rules Could Broaden PACE

If enacted, the proposal would shift PACE from a state-by-state option toward a nationwide Medicaid requirement. That could affect states that do not currently offer the program and could change how quickly eligible people begin receiving services after enrolling. The bill’s provisions on program agreements and marketing also target rules that supporters say can restrict provider expansion.

PACE combines medical and social services for older adults who qualify for nursing home-level care but live in their communities. Supporters argue that broader availability could give more people access to care at home and address demand for home- and community-based services. Rep. Dingell said in a statement that too many people remain on waitlists for such services. The bill’s effects would depend on implementation, provider capacity and state compliance; the source material does not provide estimates of how many additional participants or locations it might produce.

For providers, a federal requirement and fewer limits could create a path to serve additional areas, but expansion would still require organizations to establish and operate programs. Seen Health, which serves older adults of Asian and Pacific Islander heritage in Southern California, said the proposal could help proven programs reach more communities. That is an industry supporter’s assessment, not a quantified projection of growth.

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PACE’s Current State-by-State Reach

PACE operates under both Medicare and Medicaid and provides a package of health and social services designed for older adults who need a level of care comparable to nursing home care. Participants receive services while living at home. The proposal addresses how the program is offered and expanded; it does not change the basic description of PACE provided in the source report.

Under current federal policy described by Home Health Care News, enrollment generally takes effect on the first day of the month after the provider receives the agreement. The bill would permit enrollment to begin at any point in the month. Its sponsors also seek to remove limits on applications to become a PACE organization and constraints on expansion, alongside making the program mandatory under Medicaid.

The bill is bipartisan and has backing from aging-services and disability organizations, but support does not mean it has passed. LeadingAge, an advocacy association representing nonprofit aging-services providers, supports the proposal and said it is unlikely to become law by the end of 2026. A companion bill is expected in the Senate by year’s end, according to the report.

“PACE keeps frail older adults healthy and living at home, and families trust it.”

— Xing Su, Seen Health co-founder and CEO, speaking to Home Health Care News

Passage and Implementation Remain Unsettled

The proposal has been introduced, but the source report does not say that it has advanced through committee or received a vote. Its legislative path and final provisions remain uncertain. LeadingAge assesses that passage by the end of 2026 is unlikely, while a Senate companion bill is expected to be introduced by then.

The report does not quantify how many states would need to establish PACE, how many new providers might open, or how many people could gain access if the bill became law. It is also not clear from the available material how states without existing programs would build the capacity to meet a three-year deadline. The proposed deadlines would begin only after enactment.

Senate Proposal and Congressional Action

A companion measure is expected to be introduced in the Senate by the end of 2026. The House bill would then need to proceed through the legislative process, and any final version would require congressional approval before the proposed Medicaid changes could take effect. Until then, PACE remains optional for states under the policy described in the report.

Further developments to watch include whether the Senate companion is introduced, whether either bill receives committee or floor action, and whether lawmakers revise the proposed enrollment rules, provider limits or implementation timelines. If the measure were enacted, states would face the proposed 180-day or three-year compliance periods, depending on whether they already have a PACE provider.

Key Questions

What would the PACE Access Improvement Act change?

It would make PACE mandatory under Medicaid in every state, allow enrollment to take effect any day of the month, and remove certain marketing restrictions and numerical limits on program agreements.

Is PACE currently available nationwide?

No. The National PACE Association figures cited in the report list PACE in 33 states and the District of Columbia, across 204 locations.

When would states have to comply?

Under the proposal, states that already have at least one PACE provider would have 180 days after enactment. States without a provider would have three years. Those timelines would apply only if the bill becomes law.

Has the bill passed?

No. The legislation was introduced in the House on Sept. 24. The report says a Senate companion is expected by the end of 2026 and cites LeadingAge’s view that passage by the end of the year is unlikely.

Source: rss

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