New round of funding announced for State Innovation Models Last Updated: August 13, 2014
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The Centers for Medicare & Medicaid Services (CMS) has announced a second round of funding for the State Innovation Models (SIM) initiative, which provides funding and technical support for states that wish to test or design new payment and healthcare service delivery models that will improve outcomes for Medicare, Medicaid and Children’s Health Insurance Program beneficiaries. We encourage Premier members to talk to your state hospital association about whether your state should pursue this funding opportunity.

In this round of funding, CMS will provide:

  • Up to $30 million for as many as 15 Model Design cooperative agreements
  • Up to $700 million for as many as 12 state-sponsored Model Test cooperative agreements

Partnerships facilitated by this initiative provide states with the opportunity to improve healthcare delivery on a wider, more expedited scale. Test states in round 1 of the SIM initiative instituted advanced programs such as accountable care organizations, accountable care communities, patient centered medical homes and bundled payments programs. Also of note, round 1 states that participated in the Model Design initiative are required to apply for round 2.

CMS has reworked the second round of funding, based on lessons learned from the first round of the program, and requires states applying for the program to:

  • Articulate a broad vision for state-wide health care transformation
  • Describe ambitious, realizable programs in identified areas
  • Commit to using the full range of regulatory, payment, and policy authorities available to facilitate transformation
  • Commit to sustain their model after the design and/or test period concludes

Read more about the initiative and see whether your state participated in round 1.