Here is a useful summary of the Medicaid health homes authorized by section 2703 of the Patient Protection and Affordable Care Act from the Centers for Medicare & Medicaid Services.
States may seek 90% federal funding for eight quarters (two years) for care coordination and other specified services for Medicaid beneficiaries with 1) two or more chronic conditions, 2) one chronic condition and risk of developing another chronic condition , or 3) a serious and persistent mental health condition . Chronic conditions may include a mental health condition, a substance abuse disorder, asthma, diabetes, heart disease, being overweight, and other conditions defined by the state based on their state-level epidemiology.
States may utilize this funding either in a fee-for-service or managed care context but the funding must be invested in new or additional services for these Medicaid beneficiaries. The availability of these additional federal funds are intended to move these high cost Medicaid beneficiaries into health homes based on the patient-centered medical home model, with integration of any needed behavioral health services to be especially highlighted.