The Centers for Medicare & Medicaid Services (CMS) through its Innovation Center is seeking up to five state Medicaid agencies to participate in the Innovation in Behavioral Health (IBH) Model, a seven-year voluntary service delivery and payment model. The primary objective is to test an integrated care delivery framework for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health conditions and/or substance use disorders. Key requirements include developing a Medicaid Payment Approach, recruiting behavioral health practice participants, and implementing a care delivery framework that integrates physical and behavioral health services. The model will focus on a value-based payment (VBP) approach aligned across Medicaid and Medicare, with participants expected to engage in comprehensive data collection and quality measurement activities. The application deadline is June 3, 2026, with an anticipated Notice of Award to be issued on September 15, 2026.
The total funding available is up to $7.5 million per selected state Medicaid agency through a cooperative agreement, with a potential total program funding of $37.5 million. The model will span a seven-year performance period, consisting of a two-year Pre-Implementation Period (January 2027 - December 2028) and a five-year Implementation Period (January 2029 - December 2033). The program is structured under the Federal Assistance Listings Number 93.610 and is specifically targeted at state governments interested in transforming behavioral health service delivery. Performance will be evaluated based on the agency's ability to integrate care, implement value-based payment models, and improve outcomes for beneficiaries with behavioral health needs. The place of performance will be within the selected state Medicaid agencies and their associated behavioral health organizations.