Innovation in Behavioral Health (IBH)

Closed Posted

Opportunity number
CMS-2Q2-26-001
Agency
Applications due
Award size
Up to $7,500,000

Opportunity facts

Assistance listings
Funding instrument
Cooperative Agreement
Category
  • Health
Eligible applicants
  • State Governments
Points of contact

Opportunity details come from Grants.gov. Updated .

About this opportunity

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.

Synopsis

The Innovation in Behavioral Health (IBH) Model (the "Model") for Cohort II Recipients is a seven-year, voluntary service delivery and payment model promoting integrated care in behavioral health (BH) settings. The IBH Model will test the impact of a value-based payment (VBP) model aligned across Medicaid and Medicare that supports an integrated care delivery framework in specialty BH organizations and settings for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health conditions and/or substance use disorders (SUDs).


The Centers for Medicare & Medicaid Services (CMS), through its Center for Medicare & Medicaid Innovation (Innovation Center), will select up to five state Medicaid agencies (SMAs) to participate in the Model. The Model will have a seven-year performance period, which will be comprised of a two-year Pre-Implementation Period (beginning January 2027 and ending December 2028) along with a five-year Implementation Period (beginning January 2029 and ending December 2033). Up to $7.5 million dollars in cooperative agreement award funding will be available to each selected Recipient over the course of the seven years.




Files

File Type Posted
IBH-NOFO-Cohort2-508.pdf PDF

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