Nationwide, 28 states, three territories and the District of
Columbia will receive over $665 million in Affordable Care Act
funding to design and test health care payment and service delivery
models that will improve health care quality and lower costs.
Together with awards released in early 2013, over half of states (34
states and 3 territories and the District of Columbia), representing
nearly two thirds of the population are participating in
comprehensive state-based innovation in health system
"We are committed to partnering with Illinois to advance the goals
we all share: better care, smarter spending, and, ultimately,
healthier people," said Secretary Sylvia Mathews Burwell. "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."
State Innovation Model funds will support states in planning or
implementing a customized, fully developed proposal capable of
creating statewide health transformation. Examples initiatives
- Improving primary care through patient centered medical
homes, building upon current Accountable Care Organization
models or integrating primary care and behavioral health
- Providing technical assistance and data to health care
providers and payers that are working to advance models of
integrated, team-based care, or transition to value-based
- Creating unified quality measure score cards that health
care payers and providers can use to align quality improvement
and value based payment methodologies.
- Expanding the adoption of health information technology to
improve patient care.
- Fostering partnerships between public, behavioral, and
primary health care providers.
- Strengthening the health care workforce through educational
programs, inter-professional training, primary care residencies
and community health worker training.
Today’s awards include both states that are designing plans
and strategies for statewide innovation and states that are
taking the next step from designing to testing and implementing
comprehensive statewide health transformation plans.
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Nearly $43 million in State Innovation Model Design Awards
will support 17 states, including Illinois, three territories,
and the District of Columbia to create and refine proposals for
comprehensive health care transformation.
Over $622 million in State Innovation Model Test Awards will
support eleven states – Colorado, Connecticut, Delaware, Idaho,
Iowa, Michigan, New York, Ohio, Rhode Island, Tennessee and
Washington – in implementing their State Health Care Innovation
Plans. These states join six previous round one Model Test
awardees: Arkansas, Maine, Massachusetts, Minnesota, Oregon, and
States will engage a broad group of stakeholders including
health care providers and systems, long-term service and support
providers, commercial payers, state hospital and medical
associations, tribal communities and consumer advocacy
organizations. Transformation efforts supported by this
initiative must improve health, improve care and lower costs for
Medicare, Medicaid, and Children’s Health Insurance Program
(CHIP) beneficiaries. In addition, CMS will identify best
practices among state-led transformations that are potentially
scalable to all states.
The State Innovation Models initiative is one part of an overall
effort to help lower costs and improve care through the
Affordable Care Act. Initiatives like Accountable Care
Organizations, the Partnership for Patients and others have
helped reduce hospital readmissions in Medicare by nearly 8
percent between 2007 and 2013 – translating into 150,000 fewer
readmissions – and quality improvements have resulted in saving
50,000 lives and $12 billion in health spending from 2010 to
2013, according to preliminary estimates.
For more information on the awards announced today, please go
To learn more about other innovative models being tested by the
CMS Innovation Center, please visit: innovation.cms.gov.
[U.S. Department of Health and Human