HHS Announces $665 Million in Funding to States for New Care Model Initiatives

The Department of Health and Human Services (HHS) is dishing out $665 million in Affordable Care Act-based funding across 28 states, three territories, and the District of Columbia to spur the implementation of new care models. 

The State Innovation Models initiative is HHS’ effort to get states to implement care models that will improve quality and accessibility of care, while lowering the cost. It aims to get states to implement initiatives that, among other things, build on accountable care organization (ACO) and patient-centered medical home (PCMH) models; create unified quality measure score cards; expand the adoption of health information technology; and expand the healthcare workforce. 

"We're seeing states do some very innovative things when it comes to improving the ways we deliver care, pay providers, and distribute information. These funds will support states in integrating and coordinating the many elements of health care – including Medicaid, Medicare, public health, and private health care delivery systems – to the benefit of patients, businesses, and taxpayers alike,” HHS Secretary Sylvia Mathews Burwell said in a statement. 

The initiative is giving funding to states that are both both designing and testing/implementing plans for new care delivery models. Those states that are ready for the implementation funding, 11 in all, join six other states that were previously awarded ACA funding in 2013. The other 17 states, as well as three territories and the District of Columbia, are being awarded for their proposals. Recipients must improve care and lower costs for Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) beneficiaries.