California Among States Receiving Payment, Care Delivery Awards
On Thursday, HHS announced 25 states, including California,Â that will be awarded nearly $300 million for a state innovation program that will help states design and test new multi-payer payment and care delivery models for their Medicaid and CHIP programs, Modern Healthcare reports (Daly, Modern Healthcare, 2/21).
CMS will use the program to learn whether new models outlined in the ACA, including accountable care organizations, are successful when implemented broadly and combined with state-initiated reforms.
Awardees of State Innovation Model Design Funds
HHS awarded the State Innovation Model design funds to 16 states to further develop proposals for comprehensive health care transformation. The states are:
- New Hampshire;
- Rhode Island;
- Texas; and
- Utah (Monegain, Healthcare IT News, 2/21).
Meanwhile, Arkansas, Maine, Massachusetts, Minnesota, Oregon and Vermont were awarded the first State Innovation Model testing funds, which will be used to implement plans aimed at transforming the health care delivery system within their state (Reuters, 2/21). According to the project's website, the states will be testing programs intended to curb heath care costs, "while maintaining or improving quality of care" in federal entitlement programs (Wayne, Bloomberg Businessweek, 2/21).
In addition, HHS announced that Colorado, New York and Washington will receive State Innovation Model pre-testing awards that will help those states continue to develop comprehensive innovation plans.
States will have six months to submit their State Health Care Innovation Plans to CMS, in order to qualify for an anticipated second round of Model Testing awards (Healthcare IT News, 2/21).In a news release, HHS Secretary Kathleen Sebelius said, "As a former governor, I understand the real sense of urgency that states feel to improve the health of their populations while also reducing total health care costs, and it's critical that the many elements of health care in each state -- including Medicaid, public health and workforce training -- work together" (Modern Healthcare, 2/21). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.