(320 ILCS 40/1) (from Ch. 23, par. 6901)
    Sec. 1. Short title. This Act may be cited as the All‑Inclusive Care for the Elderly Act.
(Source: P.A. 87‑411.)

    (320 ILCS 40/5)(from Ch. 23, par. 6905)
    Sec. 5. Legislative declaration. The General Assembly finds and declares that it is the intent of this Act to replicate the On Lok program in San Francisco, California, that has proven to be cost‑effective at both the state and federal levels. The PACE program is part of a national replication project authorized in Section 9412(b)(2) of the federal Omnibus Reconciliation Act of 1986, which instructs the Secretary of the federal Department of Health and Human Services to grant Medicare and Medicaid waivers to permit not more than 10 public or nonprofit private community‑based organizations in the country to provide comprehensive health care services on a capitated basis to frail elderly who are at risk of institutionalization. The General Assembly finds that by coordinating an extensive array of medical and nonmedical services, the needs of the participants will be met primarily in an outpatient environment in an adult day health center, in their homes, or in an institutional setting. The General Assembly finds that such a service delivery system will enhance the quality of life for the participant and offers the potential to reduce and cap costs to Illinois of the medical needs of the participants, including hospital and nursing home admissions.
    The General Assembly declares that the purpose of this Act is to provide services that would foster the following goals:
    To maintain eligible persons at home as an alternative to long‑term institutionalization;
    To provide optimum accessibility to various important social and health resources that are available to assist eligible persons in maintaining independent living;
    To provide that eligible persons who are frail elderly but who have the capacity to remain in an independent living situation have access to the appropriate social and health services without which independent living would not be possible;
    To coordinate, integrate, and link these social and health services by removing obstacles that impede or limit improvements in delivery of these services;
    To provide the most efficient and effective use of capitated funds for the delivery of these social and health services;
    To assure that capitation payments amount to no more than 95% of the amount paid under the Medicaid fee‑for‑service structure of an actuarially similar population.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (320 ILCS 40/10)(from Ch. 23, par. 6910)
    Sec. 10. Services for eligible persons. Within the context of the PACE program established under this Act, the Department of Healthcare and Family Services may include any or all of the services in Article V of the Illinois Public Aid Code.
    An eligible person may elect to receive services from the PACE program. If such an election is made, the eligible person shall not remain eligible for payment through the regular Medicare or Medicaid program. All services and programs provided through the PACE program shall be provided in accordance with this Act. An eligible person may elect to disenroll from the PACE program at any time.
    For purposes of this Act, "eligible person" means a frail elderly individual who voluntarily enrolls in the PACE program, whose income and resources do not exceed limits established by the Department of Healthcare and Family Services and for whom a licensed physician certifies that such a program provides an appropriate alternative to institutionalized care. The term "frail elderly" means an individual who meets the age and functional eligibility requirements established by the Department of Healthcare and Family Services.
(Source: P.A. 94‑48, eff. 7‑1‑05; 95‑331, eff. 8‑21‑07.)

    (320 ILCS 40/15)(from Ch. 23, par. 6915)
    Sec. 15. Program implementation.
    (a) Upon receipt of federal approval, the Illinois Department of Public Aid (now Department of Healthcare and Family Services) shall implement the PACE program pursuant to the provisions of the approved Title XIX State plan.
    (b) Using a risk‑based financing model, the nonprofit organization providing the PACE program shall assume responsibility for all costs generated by the PACE program participants, and it shall create and maintain a risk reserve fund that will cover any cost overages for any participant. The PACE program is responsible for the entire range of services in the consolidated service model, including hospital and nursing home care, according to participant need as determined by a multidisciplinary team. The nonprofit organization providing the PACE program is responsible for the full financial risk. Specific arrangements of the risk‑based financing model shall be adopted and negotiated by the federal Centers for Medicare and Medicaid Services, the nonprofit organization providing the PACE program, and the Department of Healthcare and Family Services.
(Source: P.A. 94‑48, eff. 7‑1‑05; 95‑331, eff. 8‑21‑07.)

    (320 ILCS 40/20)(from Ch. 23, par. 6920)
    Sec. 20. Duties of the Department of Healthcare and Family Services.
    (a) The Department of Healthcare and Family Services shall provide a system for reimbursement for services to the PACE program.
    (b) The Department of Healthcare and Family Services shall develop and implement a contract with the nonprofit organization providing the PACE program that sets forth contractual obligations for the PACE program, including but not limited to reporting and monitoring of utilization of costs of the program as required by the Illinois Department.
    (c) The Department of Healthcare and Family Services shall acknowledge that it is participating in the national PACE project as initiated by Congress.
    (d) The Department of Healthcare and Family Services or its designee shall be responsible for certifying the eligibility for services of all PACE program participants.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (320 ILCS 40/25)(from Ch. 23, par. 6925)
    Sec. 25. Rules and regulations. The Department of Healthcare and Family Services shall promulgate rules and regulations necessary to implement this Act.
(Source: P.A. 95‑331, eff. 8‑21‑07.)

    (320 ILCS 40/30)(from Ch. 23, par. 6930)
    Sec. 30. Rate of payment. The General Assembly shall make appropriations to the Department of Healthcare and Family Services to fund services under this Act provided at a monthly capitated rate. The Department shall annually renegotiate a monthly capitated rate for the contracted services based on the 95% of the Medicaid fee‑for‑service costs of an actuarially similar population.
(Source: P.A. 95‑331, eff. 8‑21‑07.)