[Federal Register: November 26, 2004 (Volume 69, Number 227)]
[Notices]
[Page 68931]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26no04-79]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
[CMS-5011-WN]
Medicare and Medicaid Programs; Notice of Withdrawal of the
Solicitation of Proposals for the Private, for-Profit Demonstration
Project for the Program of All-Inclusive Care for the Elderly (PACE)
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Withdrawal notice.
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SUMMARY: This document withdraws the ``Notice for the Solicitation of
Proposals for the Private, For-Profit Demonstration Project for the
Program of All-Inclusive Care for the Elderly (PACE)'' published in the
Federal Register on August 10, 2001. That notice solicited proposals
from private, for-profit organizations for a fully captitated joint
Medicare and Medicaid demonstration. The goal of the solicitation
notice was to determine whether the risk-based long-term care model
employed by the nonprofit PACE could be replicated successfully by for-
profit organization.
EFFECTIVE DATE: March 28, 2005.
FOR FURTHER INFORMATION CONTACT: Michael Henesch, (410) 786-6685.
SUPPLEMENTARY INFORMATION:
I. Background
Section 4804(a)(2) of the Balance Budget Act of 1997 (BBA) requires
us to conduct a study to compare the costs, quality, and access to
services provided by for-profit entities to those of nonprofit Program
of All-Inclusive Care for the Elderly providers (PACE). Section
4801(h)(2)(A) of the BBA states that the terms and conditions for the
for-profit PACE must be the same as those for PACE providers that are
nonprofit, private organizations except that only 10 waivers may be
granted.
On August 10, 2001, we published a notice in the Federal Register
(66 FR 42229). The notice solicited proposals from for-profit entities
to demonstrate that they could successfully provide comprehensive
coordinated care for the frail elderly under a prepaid fully capitated
payment system. The solicitation notice specified that we would
consider proposals only from for-profit organizations and the
demonstration would operate for 3 years.
II. Provisions of the Notice
This notice withdraws the solicitation notice that we published in
the Federal Register on August 10, 2001. As specified in the
solicitation notice, we would consider proposals only from for-profit
organizations and the demonstration would operate for 3 years. Before
submitting a proposal, all interested applicants were to submit letters
of intent. We indicated that proposals would be accepted until 10 sites
were awarded. Following the selection of 10 sites, organizations that
had submitted letters of intent, but had not yet submitted proposals,
would be notified that the limit of approved sites had been reached.
Since the publication of the solicitation notice, we received only
ten letters of intent. Of these 10 letters of intent, 8 were received
in 2001 and early 2002, 1 was received in February 2003, and 1 was
received in August 2003. Although we have provided information to
numerous organizations including having discussions with the
organizations that have submitted letters of intent, we have not
received any proposals. We have also contacted the two most recent
organizations that have submitted letters of intent to offer technical
assistance and have ascertained that only one organization has
considered submitting a proposal. In addition, we have been informed by
the National PACE Association, that it has consulted with organizations
that have not submitted letters of interest.
Although the demonstration is mandated by the BBA, since CMS has
not received any proposals that it could fund under the authority of
the BBA, we are withdrawing our solicitation.
The need to keep abreast of regulatory provisions of the nonprofit
PACE requires us to attend all PACE meetings, since the for-profit PACE
demonstration would mirror nonprofit PACE policy. In the nearly 3 years
since the implementation of the solicitation notice, the effort to
maintain this level of activity has been extensive. With the enactment
of the Medicare Prescription Drug, Improvement, and Modernization Act
of 2003 (Pub. L. 108-173), we believe that our resources can better be
utilized in addressing other workloads, including various studies, and
other efforts related to the start-up of new programs and benefits.
Furthermore, we believe it is unlikely that we will receive a proposal
for a for-profit PACE demonstration. Therefore, we are withdrawing the
August 10, 2001, solicitation notice.
This notice is intended to withdraw the solicitation by March 28,
2005. This withdrawal notice provides an opportunity for organizations
that remain interested to submit proposals until that time.
III. Collection of Information Requirements
This document does not impose information collection and
recordkeeping requirements. Consequently, it need not be reviewed by
the Office of Management and Budget under the authority of the
Paperwork Reduction Act of 1995.
Authority: Section 1894(h) and 1934(h) of the Social Security
Act (42 U.S.C. 1395)
(Catalog of Federal Domestic Assistance Program No. 93.778, Medical
Assistance Program; No. 93.773 Medicare--Hospital Insurance Program;
and No. 93.774, Medicare--Supplementary Medical Insurance Program)
Dated: September 10, 2004.
Mark B. McClellan,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 04-25980 Filed 11-24-04; 8:45 am]
BILLING CODE 4120-01-P