HHS Offers States $275M for Care Delivery, Payment Models

John Commins, for HealthLeaders Media , July 24, 2012

The federal government is making available to states $275 million to design and test cost-effective care delivery and multi-payer coordination models.

"As a former governor, I've seen states in action and know what great laboratories they are for innovations we can put into practice nationwide," Health and Human Services Secretary Kathleen Sebelius said in a media release.

States may apply for the funding from two separate pots depending upon how far along they are in planning systems to deliver coordinated care for the millions of people who are expected to receive health insurance coverage under the Affordable Care Act.

"They want to give states the room to innovate and find ways to address the quality and cost issues," says Neva Kaye, managing director for health system performance at the National Academy for State Health Policy.

"States are in a lot of different places in that effort. Some are ready to launch or have done a lot of work in that area and some are just starting to think about what they might do. This is trying to get the support out to the states and meet them where they are," Kaye says.

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