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The Medicare Payment Advisory Commission (MedPAC) released its June 2012 Report to the Congress: Medicare and the Health Care Delivery System, which discusses the Program of All Inclusive Care for the Elderly (PACE) and makes recommendations on expanding PACE.
The report states that PACE operates on a small scale, and enrollment in PACE is slow. Research indicates that the PACE program improves quality of care relative to fee-for-services (FFS).
Medicare spending on PACE exceeds fee-for-services spending for similar beneficiaries according to MedPAC. PACE payments are based on Medicare Advantage (MA) payment rates in force prior to enactment of the Patient Protection and Affordable Care Act (PPACA) of 2010.
Those rates are significantly higher than current law MA benchmarks.
The MedPAC recommendations are:
MedPAC believes that fully integrated managed care plans and Program of AllInclusive Care for the Elderly (PACE) providers offer the best opportunity to improve care coordination for dual eligibles.