PACE Payment Adjustment Coming In March

On January 29, 2026, the Centers for Medicare and Medicaid Services (CMS) Medicare Plan Payment Group released a memo outlining information about PACE Medicare Capitation payments for January and February. The notice indicates that CMS anticipated having updated state and county code (SCC) data to adjust rates for the first two months of the year. The updated codes were not applied, and default rates were used. CMS anticipates that the prospective payment for March will be appropriately calculated and retroactive adjustments will be included in the March Monthly Membership Report (MMR) Data File with Adjustment reason code (ARC) 94- Special payment adjustment due to cleanup (ID CS4617180). You can review past memos from the health plan management system (HPMS) here.