Yes, Social Security counts as income for PACE, but with one adjustment that often decides whether an applicant qualifies: Medicare Part B premiums withheld from your Social Security check are subtracted before PACE looks at your total.1PACEcares. PACE Income Eligibility The program starts from your gross Social Security benefit for the previous calendar year and then compares your combined income to a fixed dollar limit.
How PACE Counts Your Social Security
PACE uses the gross figure from your SSA-1099, not the smaller deposit that lands in your bank account after deductions. Supplemental Security Income is counted the same way.1PACEcares. PACE Income Eligibility
The one carve-out is Medicare Part B. Whatever amount was withheld from your Social Security check for Part B does not count toward your PACE income.1PACEcares. PACE Income Eligibility Say your gross Social Security last year was $18,000 and $2,096 went to Part B. PACE counts $15,904, not $18,000. That single adjustment can shift someone from PACENET into PACE, or from ineligible into PACENET.
If you are married and living with your spouse, both incomes are combined regardless of which of you applies.1PACEcares. PACE Income Eligibility
The Income Limits You’re Comparing Against
PACE and PACENET use the same total-income figure but different thresholds.2Pennsylvania.gov. Apply for the Pharmaceutical Assistance Contract for the Elderly
- PACE: $14,500 or less for a single person; $17,700 or less for a married couple.
- PACENET: $14,501 to $33,500 for a single person; $17,701 to $41,500 for a married couple.
You must also be 65 or older, have lived in Pennsylvania for at least 90 days, and not be receiving prescription benefits through Medicaid.2Pennsylvania.gov. Apply for the Pharmaceutical Assistance Contract for the Elderly
What Else Gets Added To Your Social Security
Social Security is usually the largest number on a PACE application, but it is rarely the only one. The program adds nearly every other income stream to it before applying the limit:1PACEcares. PACE Income Eligibility
- Gross pensions, railroad retirement, and the taxable portion of annuities and IRAs
- Wages, salaries, commissions, and self-employment or business income
- Interest, dividends, capital gains, net rental income, and royalties
- Unemployment compensation, cash public assistance, and workers’ compensation
- Alimony, death benefit payments above $10,000, cash or property gifts and inheritances over $300, and lottery or gambling winnings of any amount
You can round each source and the total to the nearest whole dollar.
What PACE Doesn’t Count
Several income types are excluded entirely, and missing one can make you think you’re over the limit when you aren’t.1PACEcares. PACE Income Eligibility
- Medicare Part B premiums withheld from Social Security
- Pennsylvania property tax and rent rebates
- VA Aid and Attendance and VA dependency and indemnity compensation
- SNAP benefits and LIHEAP energy assistance
- Black Lung and White Lung benefits
- Civil lawsuit damages from a settlement or judgment
- The first $10,000 of any death benefit payment
- Federal stimulus payments
- Income of household members other than your spouse
An applicant receiving VA Aid and Attendance alongside Social Security might assume every government payment counts. It doesn’t. That VA benefit is ignored by PACE.
If a Social Security Raise Pushes You Over the Limit
One of the most common worries among current enrollees is that a Social Security cost-of-living adjustment will make them ineligible. Pennsylvania addresses this with a COLA moratorium, most recently extended through December 31, 2027 under Act 49 of 2025. The law lets more than 20,000 older Pennsylvanians keep their prescription benefits when a Social Security COLA would otherwise disqualify them.3Pennsylvania Department of Aging. Governor Shapiro Signs Bill to Extend PACE PACENET COLA Moratorium
If you are already enrolled in PACE or PACENET and a Social Security COLA is the only reason your income now exceeds the limit, you stay enrolled. The program applies the moratorium automatically; no separate paperwork is required.
The moratorium protects existing enrollees. It does not raise the income limits for someone applying for the first time.
If Your Income Looks Too High
Before assuming you don’t qualify, redo the math with the exclusions above. The most common miscalculation is using the gross Social Security number without subtracting Medicare Part B, or counting a property tax rebate or VA Aid and Attendance that PACE ignores. Recalculating with the correct exclusions may put you back under the limit without any appeal.
If PACE denies your application or reduces your benefits and you believe the income figure is wrong, you have the right to a fair hearing before the Bureau of Hearings and Appeals. An Administrative Law Judge hears the case and issues a proposed report to the Secretary of Aging or a designee, after which both sides have 30 days to file exceptions before a final order. You can then request reconsideration within 15 calendar days or appeal to the Commonwealth Court of Pennsylvania within 30 days.4Pennsylvania Department of Human Services. Hearing and Appeals Process