What's happening
This bill simplifies licensing rules for PACE organizations in New York to match federal standards.
Why it matters
Reduces administrative hurdles for PACE organizations. By aligning New York’s licensing standards for PACE (Programs of All-Inclusive Care for the Elderly) organizations strictly with federal requirements, this bill removes numerous state-specific requirements that previously overlapped with or exceeded federal standards. This could make it easier for health care providers, especially those serving older adults, to launch and operate PACE programs across New York State.
Potentially expands access for elderly and chronically ill populations. Streamlining licensing may lead to the creation of more PACE organizations, particularly in underserved or rural regions of New York. This could increase options for frail seniors and their families seeking comprehensive, coordinated care that allows them to remain in their homes and communities.
Shifts oversight and regulatory burden. The bill significantly reduces New York-specific oversight (such as certain solvency requirements and duplicative licensing as diagnostic/treatment centers, home care agencies, or HMOs), placing more reliance on federal standards and processes. This represents a notable change in how PACE programs are regulated and could impact consumer protections, state-level quality controls, and the overall landscape of long-term care provider oversight in New York.
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Who cares
PACE Organizations
Organizations seeking to operate Programs of All-Inclusive Care for the Elderly (PACE) in New York will care about the streamlined and unified licensure process, reduced state-specific financial solvency requirements, and simpler compliance with federal over state regulations.
Elderly and Their Families
Seniors eligible for PACE and their caregivers will care about any changes that could affect access, quality, or consistency of care, particularly if the streamlined process encourages more providers to enter the market.
New York State Department of Health
The agency will care about changes to its regulatory authority, oversight responsibilities, and the process for reviewing and approving PACE organization applications.
Current and Prospective PACE Employees
Staff and administrators of PACE programs will care about regulatory changes that could impact organizational structure, job requirements, and the operational environment of their workplaces.
Headline styles
Streamline PACE Licenses
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to health
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
11329
IN ASSEMBLY
May 11, 2026
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Paulin) -read once and referred to the Committee on Health
AN ACT to amend the public health law, in relation to licensure of PACE organizations
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 2999-u of the public health law, as amended by chapter 90 of the laws of 2023, is amended to read as follows:
§ 2999-u. Licensure. 1. The commissioner shall license an entity applying for licensure as a PACE organization if the applicant demonstrates to the satisfaction of the commissioner that the applicant will:
(a) comply with the requirements of a PACE organization under applicable federal law and regulations;
(b) provide a facility or facilities at which primary care and other services are furnished to enrollees;
(c) provide an interdisciplinary team approach to care management, care delivery and care planning;
(d) comply with this article[, the applicable provisions of articles twenty-eight, thirty-six and forty-four of this chapter and regulations thereunder,] and regulations of the commissioner under this article; and
(e) enter into a PACE organization contract and agreement with the department and CMS.
2. (a) A PACE organization shall serve an approved geographic service area.
(b) A PACE organization and its incorporators, directors, sponsors, stockholders, members, and operators shall have the experience, competence, and standing in the community as to give reasonable assurance of their ability to operate the organization to provide a consistently high level of care for enrollees and comply with this article. A PACE organization shall demonstrate that where any incorporator, director, sponsor, stockholder, member, or operator of the organization holds, or within the past seven years has held, a controlling interest or been a controlling person in an organization or facility licensed under this
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15777-01-6
chapter, a consistently high level of care has been rendered in each such organization or facility.
(c) A PACE organization shall not be required to meet requirements for financial solvency [under paragraph (c) of subdivision one of section forty-four hundred three of this chapter, including a contingent reserve requirement which may, by regulations of the commissioner, be different from that required by that paragraph] in excess of federal requirements regarding fiscal soundness of PACE programs.
(d) A PACE organization shall be deemed to be a health maintenance organization under article forty-four of this chapter for purposes of subdivision one of section sixty-five hundred twenty-seven of the education law.
3. (a) The commissioner shall establish in regulation a streamlined and unified licensure process for PACE organizations that includes the applicable program requirements of this article and [articles twentyeight, thirty-six and forty-four of this chapter] reflects applicable federal regulations and process.
(b) A license under this article shall require approval of the public health and health planning council.
§ 2. Section 2999-y of the public health law, as amended by chapter 90 of the laws of 2023, is amended to read as follows:
§ 2999-y. Regulations and applicable laws. 1. The commissioner shall make regulations and take other actions reasonably necessary to implement this article, including the establishment of any rules and processes appropriate for the safe, efficient and orderly administration of the program and for the maintenance and revocation of licensure under this article. While awaiting finalization of regulations pursuant to this article, the commissioner shall continue to process applications in a timely manner and may apply policies regarding PACE that were in effect prior to June thirtieth, two thousand twenty-three for such applications except where such policies are in direct conflict with the plain language of this article, as amended.
2. [(a)] Licensure granted under this article may, in accordance with the approval by the commissioner, entitle the PACE organization to act in the capacity and perform the activities of a diagnostic and treatment center, home care services agency, health maintenance organization, or managed long term care plan for which licensure or certification is otherwise required under article twenty-eight, thirty-six, or forty-four of this chapter as applicable without such separate license or certification for purposes relating to the PACE.
[(b) To the extent that a PACE organization is acting in the capacity or performing an activity for which licensure or certification is otherwise required under article twenty-eight, thirty-six, or forty-four of this chapter, the PACE organization shall comply with the applicable requirements of such articles and any applicable regulations adopted thereunder; except that where such requirements are inconsistent with the requirements of this article or regulations adopted by the commissioner under this article, the requirements of this article and such regulations shall apply.]
3. The commissioner may apply for federal waivers under Medicaid or demonstration programs under Medicare relating to the PACE program, provided that the waiver or demonstration shall not diminish any right or benefit of enrollees under this article.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.