This bill aims to adjust the monthly Medicaid capitation rates for participants in the Program of All-Inclusive Care for the Elderly (PACE). Specifically, it establishes that the monthly Medicaid capitation rate for enrollees in the PACE program must be at least 98 percent of what the State would have paid if the individual were receiving long-term care services through the traditional Medicaid fee-for-service system. For participants who are eligible for both Medicare and Medicaid, the capitation rate is set at no less than 95 percent of the same amount.

Additionally, the bill stipulates that any PACE program commencing operations on or after July 1, 2026, will receive a monthly Medicaid capitation rate of at least 98 percent for the first 24 months of operation. The Commissioner of Human Services is tasked with applying for necessary Medicaid waivers or state plan amendments to implement these provisions and secure federal financial reimbursements. The bill is set to take effect immediately upon passage.