Program of All-Inclusive Care for the Elderly.

Existing law establishes the federal Medicaid Program, administered by each state, California's version of which is the Medi-Cal program. The Medi-Cal program, which is administered by the State Department of Health Care Services under the direction of the Director of Health Care Services, provides qualified low-income persons with health care services. Existing federal law establishes the Program of All-Inclusive Care for the Elderly (PACE) , which provides specified services for older individuals so that they may continue living in the community. Federal law authorizes states to implement the PACE program as a Medicaid state option. Existing state law authorizes the director to establish the California Program of All-Inclusive Care for the Elderly and contract with up to 10 demonstration projects to develop risk-based, long-term care pilot programs. Existing law also establishes PACE program services as a covered benefit of the Medi-Cal program. Existing law authorizes the department to enter into specified contracts for implementation of the PACE program, and also enter into separate contracts with certain PACE organizations, to fully implement the single state agency responsibilities assumed by the department, as specified. Existing law authorizes the department to enter into separate contracts with up to 10 PACE organizations, but prohibits certain contracts unless a Medicaid state plan amendment, electing PACE as a state Medicaid option, has been approved by the federal Centers for Medicare and Medicaid Services. This bill would, instead, require the department to establish the California Program of All-Inclusive Care for the Elderly and would delete the pilot program and demonstration project requirements in these provisions. This bill would also provide that the department may enter into contracts with public or private nonprofit organizations for implementation of the PACE program and increase to 15 the number of separate contracts the department may enter into with PACE organizations, as defined. This bill would make other conforming changes.