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INTRODUCTION In 1997 former President Bill Clinton signed Public Law 105-33 which created the greatest change in Medicare and Medicaid since its creation in 1965. This created PACE to be a permanent provider type under Medicare, and states were granted the option of paying a capitation rate for PACE services under Medicaid. The incentive to this program is that it provides less cost than the traditional Medicaid and Medicare programs and it allows people that might have …

…years. The program offers an all-inclusive benefit that covers more than an HMO and the program is paid by Medicare, Medicaid, and some pay out of pocket. These services ensure the continuity of care with the way PACE handles the service with the way the case is managed. With the ever-growing population of elderly people these services will ever be growing in members and with time the public will gain confidence in using this program.