Via an Health Plan Management System (HPMS) memo, the Centers for Medicare and Medicaid Services on July 22, 2026, restated their support for strengthening the PACE program via a memo: Policies Related to Expanding Access to Program of All-Inclusive Care for the Elderly in Rural Areas. The memo references attention to and opportunities for PACE expansion through the Rural Health Transformation Program (RHTP). CMS reminds PACE organizations of classification and registration requirements of Mobile Clinics, references guidance on alternative care sites, reiterates the availability of telehealth services and opportunities for waivers of specific PACE regulatory requirements. States are reminded of quarterly deadlines for PACE applications and that PACE rates cannot be set above the amount that would otherwise have been paid for healthcare items and services.

The memo closes by referencing the prior statement and noting, “it does not preclude a state from making payments to PACE organizations outside of the capitation rate for purposes unrelated to direct participant care, such as workforce and staffing support, health information technology updates, or other infrastructure needs.” As providers and advocates are seeking support for PACE through their RHTP, opportunities to advocate for supplemental payments appear allowable.

The memo, among others will be available in the HPMS Archive next week and can be found here.