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States will be able to draw on a $275 million pot of federal money to pursue health-care innovation initiatives, the U.S. Department of Health and Human Services (HHS) announced Thursday.
The State Innovation Models initiative will have two initial funding streams: up to five states will be selected as Model Testing states, eligible for up to $225 million in funding. Up to 25 states will have access to $50 million in Model Design funding.
The funding is intended to facilitate state planning and implementation of multi-payer models and delivery system reforms that will cut costs for Medicare, Medicaid and the Children's Health Insurance Program. Model Testing funds will be reserved to aid implementation in states that have already begun planning on their own, and Model Design money will be given to states to begin developing plans, HHS said.
Examples of innovation models include statewide primary care networks connected through health information exchanges or coordinated care systems that coordinate primary care doctors, specialists and hospitals.
HHS anticipates offering a second round of State Innovation Models grants some time next year, the department said. Applications are due Sept. 17, and awards will be granted in November.