State innovation initiative provides $300M
The State Innovation Models Initiative is providing up to $300 million to support the development and testing of state-based models for multipayer payment and healthcare delivery system transformation with the aim of improving health system performance for residents of participating states. The projects will be broad based and focus on people enrolled in Medicare, Medicaid and the Children’s Health Insurance Program (CHIP).
Over $250 million in Model Testing awards will support six states that are ready to implement their State Health Care Innovation Plans--a proposal that describes a state’s strategy to use all of the levers available to it to transform its healthcare delivery system through multi-payer payment reform and other state-led initiatives.
Three states that will receive pre-testing assistance will use the funding to continue to work on a comprehensive State Health Care Innovation Plan. States receiving pre-testing awards under the State Innovation Models initiative will have six months to submit their State Health Care Innovation Plans to the Centers of Medicare & Medicaid Services (CMS).
The 16 States that will receive Model Design funding will produce a State Health Care Innovation Plan. States will use these Health Care Innovation Plans to apply for an anticipated second round of Model Testing awards. States receiving Model Design awards under the State Innovation Models initiative will also have six months to submit their State Health Care Innovation Plans to CMS.
The Innovation Center created the State Innovation Models initiative for states that are prepared for or committed to planning, designing, testing and supporting evaluation of new payment and service delivery models in the context of larger health system transformation. The Innovation Center is interested in testing innovative payment and service delivery models that have the potential to lower costs for Medicare, Medicaid and CHIP, while maintaining or improving quality of care for program beneficiaries. The goal is the creation of multipayer models with a mission to raise community health status and reduce long-term health risks for beneficiaries of Medicare, Medicaid and CHIP.