Proposed federal Medicaid cuts could dismantle the lifeline that thousands of low-income Michigan seniors rely on to remain at home and out of institutions.
The Program of All-Inclusive Care for the Elderly – better known as PACE – provides comprehensive medical and social services to individuals 55 and older who are eligible for nursing home-level care but prefer to remain in their communities.
The program, jointly funded by Medicare and Medicaid, has earned bipartisan support for its ability to reduce hospitalizations and emergency room visits while improving quality of life.
A new report from the Michigan Department of Health and Human Services outlines the potential fallout from proposed federal Medicaid cuts totaling $880 billion. Among the most vulnerable programs is PACE.
“These are essential services,” says Kimberly Smith, CEO of Care Resources, the PACE provider serving Kent County and parts of Allegan, Barry, Ionia and Ottawa counties. “Cutting Medicaid could force Michigan to eliminate or reduce PACE services, which would have a disastrous effect on the most vulnerable in our community.”
Care Resources serves nearly 400 seniors through its day centers in Grand Rapids and Lowell, as well as in-home care. The services include medical support, medication management, physical therapy, transportation and nutritious meals, with costs covered primarily through Medicaid.
“PACE costs pennies on the dollar compared to a nursing home,” Smith says. “We’re actually saving money while providing a higher quality of life. These cuts would do the opposite by pushing people back into institutions they don’t want or need.”
To learn more about how advocates are coming together to protect the most vulnerable in our community, click here.
Last updated 5.9.2025 I H5610_WEB
