(a) General. This part sets forth the following:

1. (1) The requirements that an entity must meet to be approved as a PACE organization that operates a PACE program under Medicare and Medicaid.
2. (2) How individuals may qualify to enroll in a PACE program.
3. (3) How Medicare and Medicaid payments will be made for PACE services.
4. (4) Provisions for Federal and State monitoring of PACE programs.
5. (5) Procedures for sanctions and terminations.

(b) Program purpose. PACE provides pre-paid, capitated, comprehensive health care services designed to meet the following objectives:

1. (1) Enhance the quality of life and autonomy for frail, older adults.
2. (2) Maximize dignity of, and respect for, older adults.
3. (3) Enable frail, older adults to live in the community as long as medically and socially feasible.
4. (4) Preserve and support the older adult's family unit.