Allows the office of the secretary of family and social services (office of the secretary) to study and prepare a report containing recommendations for realigning and consolidating the local area agency on aging (area agency) planning and service areas. Amends the definition of "community and home care services" for purposes of community and home options to institutional care for the elderly and disabled program (CHOICE). Prohibits the division of aging from requiring a CHOICE provider to be certified under the Medicaid program or a Medicaid waiver program. Creates an exception for a provider of certain services. Requires an area agency to prioritize CHOICE funding to identify specified individuals and provide community and home care services to these individuals. Requires the office of the secretary, in negotiating reimbursement rates for CHOICE services, to consider the location and availability of service providers. Authorizes the office of the secretary to establish a Medicaid diversion pilot program to evaluate the effectiveness of home modification and telehealth enhanced chronic care services provided by specified area agencies in reducing Medicaid expenditures. Allows the office of the secretary, a managed care organization that has contracted with the office of Medicaid policy and planning, and a person who has contracted with a certain managed care organization or the office of the secretary to contract with an area agency to provide and receive reimbursement for a level of care assessment for the: (1) health and wellness Medicaid waiver; (2) traumatic brain injury Medicaid waiver; and (3) risk based managed care program for the covered population.