Hhs Overhaul Could Impact Pace, Advocacy Groups Urge Protection

A reimbursement program designed to keep older people in their homes could be impacted by the planned slashing of the U.S. Department of Health and Human Services’ (HHS) workforce.

The recently announced HHS overhaul, which includes restructuring its departments and cutting 10,000 jobs, will also include  “planned productivity enhancements” at the Program of All-Inclusive Care for the Elderly (PACE) management department, according to Modern Healthcare. The program will reportedly become part of the Center for Medicare & Medicaid Innovation (CMMI) under HHS Secretary Robert Kennedy Jr.’s reworking of HHS, according to the National PACE Association (NPA). 

The NPA, a PACE advocacy group, spoke out to encourage HHS to protect access to PACE.

“NPA is eager to continue our work with HHS and CMS to ensure that access to PACE services is uninterrupted and that PACE growth and expansion continues to meet the growing need for community-based senior care in America,” Shawn Bloom, president and CEO of the National PACE Association (NPA), said in a statement.

PACE provides medical care and social services to frail and older adults living at home, most of whom are dually eligible for both Medicare and Medicaid. Home-based care providers regularly interact with PACE; some specialize in the program or offer it themselves. The PACE model is cost-saving and has grown rapidly in recent years, according to the NPA.  

HHS did not immediately respond to Home Health Care News’ request for comment.

LeadingAge, an advocacy group representing over 5,400 nonprofit providers of aging services, said it is closely monitoring the HHS restructuring and specified that PACE was among the programs critical to protect.

“The Department of Health and Human Services, through its agencies and offices, operate many of the programs and provide critical services and guidance that our nonprofit and mission-driven members–including providers of care in nursing homes, in home health care settings, hospice, adult day and Programs of All Inclusive Care for the Elderly (PACE) — rely on to serve older adults and their families,” Katie Smith Sloan, president and CEO of LeadingAge, said in a statement.

While stating that it would continue to track efforts to reorganize HHS, the NPA expressed optimism about PACE’s future.

“We are reassured to hear reports that PACE growth was a consideration during the HHS reorganization process,” Bloom said. “We have a long history of working in partnership with CMS and CMMI in pursuit of our shared mission of improving care for Medicare and Medicaid beneficiaries in need of long-term services and supports.”

The NPA previously praised the Biden administration’s approach to the PACE program. In January, former President Joe Biden signed the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act into law, increasing veterans’ access to PACE. At that time, the NPA said that expanding PACE was a bipartisan effort. 

While concerns regarding PACE circulate, the exact status of the planned HHS layoffs is unclear. Kennedy said last week that he would reinstate about 20% of the affected employees. Recent reporting has attested that HHS will not reinstate a significant portion of those laid off in the overhaul, despite his statements regarding re-hiring workers.  

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