The Center for Medicare and Medicaid Innovation at the Centers for Medicare and Medicaid Services (CMS) has announced the availability of an additional $730 million for states to design and implement State Innovation Models. These awards provide significant flexibility to states to develop and implement innovative models to improve quality and reduce health care costs, often through multi-payer strategies that include Medicare, Medicaid, and now health insurance marketplaces established under the Patient Protection and Affordable Care Act.

In February 2013, CMS awarded design awards to 16 states (California, Connecticut, Delaware, Hawaii, Idaho, Illinois, Iowa, Maryland, Michigan, New Hampshire, Ohio, Pennsylvania, Rhode Island, Tennessee, Texas, and Utah), pre-testing awards to 3 states (Colorado, New York, and Washington), and testing (implementation) awards to 6 states (Arkansas, Maine, Massachusetts, Minnesota, Oregon, and Vermont).

In this second round, up to $700 million will be available for up implementation awards to up to 15 states, as well as up to $30 million for design awards for up to 15 states. Applications from the states are due on July 21, 2014, with the round two awards to begin January 2015, with one-year grants for design awards and three-year grants for implementation awards.

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