Expanding PACE could further reduce taxpayer burden, improve care, report finds

GAINING CLARITY: An economic analysis found that PACE saves taxpayers over $2.8 billion annually by providing in-home care for low-income older adults, thereby reducing reliance on nursing homes. The report also discusses proposed reforms, such as streamlining regulations and expanding eligibility, which could further enhance savings and patient outcomes.

The Program of All-Inclusive Care for the Elderly saves taxpayers more than $2.8 billion annually, according to a new issue brief from the Center for Medical Economics and Innovation at the Pacific Research Institute.

The PACE model currently saves an average of $2,800 per participant per month, or $33,600 annually, according to the analysis, but those savings could be greater with some reforms, PRI said.

“PACE is not generating theoretical savings — these are real, measurable savings that benefit Medicare and Medicaid, while giving patients the dignity of receiving care in their homes,” said Center for Medical Economics and Innovation Director Wayne Winegarden, PhD.

Winegarden also is the author of the analysis.

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Gaiven, K. (2025, August 7). Expanding PACE could further reduce taxpayer burden, improve care, report finds. McKnight’s Senior Living. https://www.mcknightsseniorliving.com/news/expanding-pace-could-further-reduce-taxpayer-burden-improve-care-report-finds/

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