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Proposal for Innovative Demonstration Project for Dual Medicaid/Medicare Members - Virtual PACE

Wisconsin recently received a $1 million federal grant to secure federal authority, similar to PACE (Program of All-inclusive Care for the Elderly) authority, for the state to have more flexibility in combining Medicare and Medicaid funding to serve people who have a nursing home or ICF-MR level of care. While PACE is available only in select counties to people age 55 or older, and coordinates services through an adult day care setting, this Virtual PACE pilot program envisions serving younger people in more counties and with greater flexibility in the location where care is provided.

Summary of Virtual PACE Program Proposal (PDF, 67 KB)

Sign up for the Virtual PACE listserv 

new Notice of Revised Virtual PACE Implementation Timeline  (PDF, 10 KB)

new Data Snapshot - Dual Eligible Members in December 2010 (PDF, 110 KB)

Town Hall Meetings

The links below are to the DHS and CMS announcement of grant awards and to the proposal submitted by DHS.

Online Surveys:
To comment on the Virtual PACE program and the PACE grant submission (PDF, 55 KB) please complete one of the following surveys.

Wisconsin is one of fifteen states that received a demonstration grant from the Centers for Medicare & Medicaid Services (CMS) to develop a care coordination and funding model to integrate the care of persons dually eligible for Medicare and Medicaid. Awarded by the Medicare-Medicaid Coordination Office (“Office of the Duals”), Wisconsin’s demonstration project is called Virtual PACE. Wisconsin’s effort is now several months into the planning stage. Recent activity included a Town Hall forum on October 12, 2011, where interested parties were able to share their vision for a reformed delivery system. Several more similar forums will be established in the near future.

Subsequent to Wisconsin’s receipt of this important planning grant for Virtual PACE, the Office of the Duals collaborated with the Center for Medicare and Medicaid Innovation (the “Innovation Center”) to provide all states with an opportunity to pursue two financial models for better integrating care for dual eligibles. These two models include:

  • Capitated Model: A State, CMS, and a health plan enter into a three-way contract, and the plan receives a prospective blended payment to provide comprehensive, coordinated care.
  • Managed Fee-for-Service Model: A State and CMS enter into an agreement by which the State would be eligible to benefit from savings resulting from initiatives designed to improve quality and reduce costs for both Medicare and Medicaid.

CMS is interested in testing these models across the country in programs that collectively serve up to 1-2 million Medicare-Medicaid enrollees. All programs will be rigorously evaluated as to their ability to improve quality and reduce costs. Meaningful engagement with stakeholders and ensuring beneficiary protections will be a crucial part of developing and testing these models.

In July 2011, CMS released a State Medicaid Directors' letter to describe these two new options. States have an option to pursue either or both of these financial alignment models. As described in the letter, States interested in the new financial alignment opportunities were required to submit a letter of intent (LOI) by October 1, 2011. CMS is offering streamlined approaches for States interested in testing these two models and technical assistance to support necessary planning activities. This information can be found on CMS' website. (Exit DHS)

Wisconsin submitted a Letter of Interest (LOI) in response to this opportunity. This LOI offers Wisconsin another viable pathway to aligning Medicare and Medicaid funding for duals. Letter of Interest from Secretary Dennis G. Smith (PDF,184 KB).

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Last Revised: February 17, 2012