HHS launches new initiative to help states reform Medicaid payment and delivery systems

Responding to recent recommendations made by the National Governors Association’s (NGA) Health Care Sustainability Task Force, the U.S. Department of Health and Human Services (HHS) is launching what it calls “a new innovative collaboration with states to improve care for Medicaid beneficiaries by accelerating efforts in reforming their health care systems to improve health and care while reducing costs.”   

According to a letter sent to states about the initiative, it is called the Medicaid Innovation Accelerator Program (IAP) and it will focus on developing resources such as financial modeling algorithms, enhanced Medicaid quality metrics and rapid cycle evaluation expertise that can help states measure the success or lack thereof of various experiments in changing care delivery and reimbursement systems in the Medicaid population. It will also offer technical assistance to help states make the most of existing grant and funding opportunities, such a the Health Care Innovation Awards, the Strong Start initiative, Medicare-Medicaid financial alignment models, and State Innovation Models (SIM) awards.

“Medicaid innovation is moving forward, and the new Medicaid Innovation Accelerator Program, announced in response to recommendations from Governors, will give states the opportunity to even further strengthen their great work,” said Health and Human Services Secretary Sylvia M. Burwell in a press release. 

According to HHS, the Medicaid Innovation Accelerator Program technical support is funded with $100 million directly from HHS. It will initially develop resources to support innovation through four key functions:

1. Identify and advance new care delivery models.
2. Help states leverage new data analytics resources.
3. Improve quality measurement.
4. Foster state-to-state learning, rapid-cycle improvement, and federal evaluation.

An initial focus area for the state-federal collaboration will be the prevalence of substance use disorder (SUD) in the Medicaid population, an issue that had been identified as a major source of concern by the states.