Yes, Social Security counts as income for PACE and PACENET, but the program uses your gross benefit from the previous calendar year with one important subtraction: the Medicare Part B premium withheld from your check does not count.1PACEcares. PACE Income Eligibility That single adjustment is often what decides whether an applicant lands inside the PACE limit, inside PACENET, or outside both.
How PACE Counts Your Social Security
The starting figure is the gross amount shown on your SSA-1099 for last year, not the smaller deposit that reaches your bank account after deductions. Supplemental Security Income is counted the same way.1PACEcares. PACE Income Eligibility
From that gross figure, PACE subtracts Medicare Part B premiums that were withheld from your Social Security.1PACEcares. PACE Income Eligibility If your gross benefit was $18,000 last year and $2,096 went to Part B, the program counts $15,904. On its own, that reduction can move someone from PACENET into PACE, or from ineligible into PACENET.
A Social Security Raise Won’t Push You Out
Current enrollees are protected from losing coverage because of a Social Security cost-of-living adjustment. Pennsylvania’s COLA moratorium was most recently extended through December 31, 2027, under Act 49 of 2025, and it keeps more than 20,000 older Pennsylvanians enrolled when a COLA would otherwise raise their income past the cutoff.2Pennsylvania Department of Aging. Governor Shapiro Signs Bill to Extend PACE PACENET COLA Moratorium
You don’t have to request this. If you were already enrolled and a Social Security COLA is the only reason your income now exceeds the limit, the program applies the moratorium automatically.
The Income Limits You’re Being Measured Against
PACE uses total income from the previous calendar year. If you are married and living together, your spouse’s income is included whether or not your spouse applies.1PACEcares. PACE Income Eligibility
- 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 also must be 65 or older, have lived in Pennsylvania for at least 90 days before applying, and not be receiving prescription benefits through Medicaid.3Pennsylvania.gov. Apply for the Pharmaceutical Assistance Contract for the Elderly
What Else Gets Added to Your Social Security
Social Security is usually the biggest number on the application, but PACE counts almost every other income stream too:1PACEcares. PACE Income Eligibility
- Gross pensions, railroad retirement, and taxable amounts from 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 over $10,000, gifts or inheritances of cash or property over $300, and lottery or gambling winnings of any amount
You can round each source and the total to the nearest whole dollar.
Income PACE Ignores
Besides the Part B premium adjustment, several income types are excluded from the calculation entirely. Some surprise applicants who assume all government payments must count.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 received through a settlement or judgment
- The first $10,000 of any death benefit (only the amount above $10,000 counts)
- Federal stimulus payments
- Income of other household members besides your spouse
An applicant receiving VA Aid and Attendance alongside Social Security, for example, might assume both count. The VA benefit is ignored entirely.
If Your Number Still Looks Too High
Before assuming you don’t qualify, run the math again with the right exclusions. The most common mistake is counting income PACE actually leaves out, especially the Medicare Part B premium and the state property tax or rent rebate. Recalculating with those removed is often enough to bring an applicant back under the limit.
If PACE denies your application or reduces your benefits, you have the right to request a fair hearing in writing with the Bureau of Hearings and Appeals, which handles disputes involving the Department of Aging.4Pennsylvania Department of Human Services. Hearing and Appeals Process