HHS Gives New Funding to States, Health Care Innovators


The Department of Health and Human Services (HHS) is making new funds available to the states for healthcare delivery. $730 million is available as part of the State Innovation Model initiative to help states design and test improvements to their public and private health care payment and delivery systems. Another $110 million in combined funding was also awarded to 12 projects under the Health Innovation Awards program.

The State Innovation Model initiative has the goals of improving health, care, and decreasing costs for consumers, including Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) beneficiaries.

As part of the State Innovation Model initiative, states, territories and the District of Columbia can apply for either a Model Test award to assist in implementation or a Model Design award to develop or enhance a comprehensive State Health Care Innovation Plan. Up to 12 states will be chosen for state-sponsored Model Testing awards of $700 million and up to 15 states will be chosen for state-sponsored Model Design work of $30 million.

The twelve innovative projects announced today represent the first batch of prospective recipients for round two of Health Care Innovation Awards program funding. In 2012, 107 organizations located in urban and rural areas, all 50 states, the District of Columbia and Puerto Rico received awards through round one of the initiative.

Round two of the Health Care Innovation Awards program focuses on four priority areas: rapidly reducing costs for patients with Medicare and Medicaid; improving care for populations with specialized needs; testing improved financial and clinical models for specific types of providers, including specialists; and linking clinical care delivery to preventive and population health. The twelve prospective recipients will test models in all four categories and spanning 13 states. Additional prospective recipients will be announced in the coming months.