You might be wondering, what is PACE a/k/a the Program for All Inclusive Care for the Elderly?  PACE is a program that is governed by MassHealth and Medicaid which provides medical, social, recreational, and wellness services to eligible participants.

Being on MassHealth is not a requirement to enroll in PACE, but if you meet the income/asset requirements, MassHealth may pay the PACE premium.

As of January 15, 2026, assets for married couples enrolled in PACE are now governed under new federal regulations, and your financial planning could be impacted.  (1)

Again, these updates ONLY apply to any new applicants to PACE who also have a spouse residing in the community.  It DOES NOT apply to single applicants (who will continue to be subject to the current individual asset limit in place).

What does this mean for you?

• Asset Limits for New PACE Applicants

In 2026, the community spouse asset limit has been set at $162,660. Married couples will now need to make plans to ensure they not only meet the asset requirements but also protect as much of their resources as possible.  This amount changes on a yearly basis and can be viewed under MassHealth’s program guidelines. (2)

• Asset Spend Down

Total countable assets which exceed the limits for married couples can still be spent down in accordance with the regulations set by MassHealth, otherwise referred to as Asset Reduction. (3)

If the applicant/member is over the individual limit but total assets below the asset limit for married couples, then the couple has ninety (90) days (from the date of the approval notice) to transfer excess assets.  These asset transfers must be to or for the sole benefit of the spouse who lives independently and not in a long-term care facility.  If the applicant/member fails to complete and/or verify the transfer(s) to the spouse, also known as the asset shift, within the time frame, termination of eligibility may occur due to excess assets.

• Right to Appeal the Asset Allowance

As with all MassHealth related matters, all applicants have the right to a fair hearing.  If the applicants assets are found to exceed the limits or the spousal asset shift is not completed in a timely manner, new applicants can initiate a fair hearing request. (4)

(1) Click Here to Read – Eligibility Operations Memo 25-17 from Heather Rossi, Deputy Chief Operating Officer, Eligibility Policy and Implementation of Commonwealth of Massachusetts Executive Office of Health and Human Services Office of Medicaid)

(2) Click Here to Read – Program financial guidelines for certain MassHealth applicants and members

(3) Click Here to Read – Regulation: 130 CMR 520.000: MassHealth: Financial Eligibility

(4) Click Here to Read – Regulation: 130 CMR 610.000: MassHealth: Fair Hearing Rules