Medicare and health costs

PACE

PACE gives people 55 and older who need a nursing home level of care all their Medicare and Medicaid care from one team, so they can keep living in the community. It covers doctors, prescriptions, home care, adult day care and rides to the PACE center and appointments. It's offered only in some areas of some states.

Checked Oct 28, 2026

Rules set by the Centers for Medicare & Medicaid Services

An older woman in her kitchen reads a letter from the day's mail

Who may qualify

Who may qualify for PACE
Age	55 or older
Care needs	You need a nursing home level of care, as certified by your state
Where you live	In the service area of a PACE organization, in a state that offers PACE under Medicaid
Living in the community	You're able to live safely in the community with help from PACE

Source: Medicare.gov (source 1)

What you may get

What PACE pays
Monthly premium if you have Medicaid	$0
Deductibles, copays and coinsurance	None for any drug, service or care your PACE team approves
Monthly premium if you have Medicare but not Medicaid	A premium for the long-term care part, plus a premium for Part D drugs
What it covers	All Medicare- and Medicaid-covered care, plus anything else your PACE team decides you need, including prescription drugs
Services may include	Adult day care with meals, home care, doctor and hospital care, dentistry, therapy, nursing home care when needed, and rides to the PACE center and medical appointments

Source: Medicare.gov (source 1)

Good to know

PACE becomes your only source of Medicare and Medicaid services, so your care comes through the PACE team.
You get your Part D drugs through PACE. If you join a separate Medicare drug plan, you'll be disenrolled from PACE.
To choose Medicare's hospice benefit, you would need to leave PACE.
Most care is given at a PACE adult day health center, with care at home and referrals as needed.
To see if there's a PACE program near you, search for PACE plans on Medicare.gov (medicare.gov/plan-compare) or call your state Medicaid office.

Sources: Medicaid.gov (Centers for Medicare & Medicaid Services) (source 2), Medicare.gov (source 1)

What people get wrong

MythPACE is only for people with Medicaid.
Not true. If you have Medicare but not Medicaid, you can join and pay a monthly premium.
MythNeeding a nursing home level of care means moving into a nursing home.
Not true. PACE helps people who need that level of care get it while living in the community.
MythOnce I join, I'm stuck with it.
Not true. You can leave PACE at any time, for any reason.

Sources

Medicare.gov, PACE (official government site). Checked Oct 28, 2026.
Medicaid.gov (Centers for Medicare & Medicaid Services), Program of All-Inclusive Care for the Elderly (official government site). Checked Oct 28, 2026.
Medicaid.gov (Centers for Medicare & Medicaid Services), Programs of All-Inclusive Care for the Elderly Benefits (official government site). Checked Oct 28, 2026.

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