As Medicare Advantage (MA) plans scale back, PACE has a unique opportunity to stand out.
According to recent reporting, national MA insurers are canceling products, trimming perks, and cutting back on supplemental benefits in 2026. Nearly 10 million beneficiaries — 28% of the MA market — are expected to switch plans during this enrollment cycle, the highest churn in five years (Modern Healthcare)
At the same time, benefits like prepaid debit cards — once central to attracting new members — are being reduced or eliminated. Insurers are now focused on retention rather than growth, investing only in benefits that keep current members from leaving, not necessarily the ones participants value most (Modern Healthcare)
For PACE organizations, this is a pivotal moment. By rolling out flex cards designed for compliance, accountability, and ease of use, PACE can differentiate itself at a time when MA is pulling back. Flex cards give participants autonomy while ensuring spending aligns with care plans — exactly the kind of innovation participants and families are looking for.
As millions of older adults reevaluate their coverage, PACE programs can seize the moment to show that they’re not just an alternative to MA — they’re leading the way in delivering the benefits people truly want.
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