Benjamin B. and Dorina Micorescu - Page 4

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            provider, a section 501(c)(3) health maintenance organization                               
            providing long-term care to the elderly funded through medicaid                             
            and medicare payments.  ElderPlace is part of a demonstration                               
            project the purpose of which is to determine whether a private                              
            concern can provide the same services as medicaid and medicare at                           
            less cost in Government funds.4  Although about 94 percent of                               
            ElderPlace enrollees are medicaid eligible, ElderPlace also has                             
            clients who are not medicaid eligible and clients who are not                               
            referred by the State.                                                                      
                  Under the partnership agreement, ASD and ElderPlace "[work]                           
            together to address the needs of older adults in Multnomah                                  
            County."                                                                                    
                  The partnership agreement provides that persons who elect to                          
            participate in the ElderPlace program must agree to receive all                             
            their health and long-term care services exclusively from                                   

                  4The ElderPlace program operates under provisions that allow                          
            States at their option to seek a Federal waiver of certain                                  
            medicaid and medicare requirements in order to underwrite adult                             
            foster home care at a rate cheaper than that for the                                        
            institutional care that they would otherwise need.  The                                     
            provisions had their inception with the "On LOK" program.  See                              
            Social Security Amendments of 1983, Pub. L. 98-21, sec. 603(c),                             
            97 Stat. 65, 168, amended by:  (a) Consolidated Omnibus Budget                              
            Reconciliation Act of 1985, Pub. L. 99-272, sec. 9220, 100 Stat.                            
            82, 183; (b) Omnibus Budget Reconciliation Act of 1986, Pub. L.                             
            99-509, sec. 9412(b), 100 Stat. 1874, 2063; (c) Omnibus Budget                              
            Reconciliation Act of 1987, Pub. L. 100-203, sec. 4118(b), (g),                             
            101 Stat. 1330, 1330-155 and 1330-156; and (d) Balanced Budget                              
            Act of 1997, Pub. L. 105-33, sec. 4801, 111 Stat. 251, 528,                                 
            codified at 42 U.S.C. sec. 1395eee (1994 & Supp. III 1997) as the                           
            Programs of All-Inclusive Care for the Elderly (PACE).                                      





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