CMS Announces $1 Billion in Funding for Innovation Grants


On May 15, 2013, CMS released a funding opportunity announcement for round two of the Health Care Innovation Awards. The grants are administered by the CMS Innovation Center, which is authorized by the Affordable Care Act to test innovative health care payment and service delivery models.  Up to $1 billion in grants will fund projects that test new payment and service delivery models in an effort to deliver better care and lower costs for Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) enrollees.  CMS is seeking proposals in the four following categories:

  • Models that are designed to rapidly reduce Medicare, Medicaid, and/or CHIP costs in outpatient and/or post-acute settings;
  • Models that improve care for populations with specialized needs;
  • Models that test approaches for specific types of providers to transform their financial and clinical models; and
  • Models that improve the health of populations through activities focused on engaging beneficiaries, prevention, wellness, and comprehensive care that extend beyond the clinical service delivery setting.

CMS welcomes applicants who have developed innovations that will drive significant improvements in population health, quality of care and total cost of care.  Eligible applicants from the private and public sectors include, but are not limited to: provider groups, health systems, payers and other private sector organizations, faith-based organizations, states, local governments, public-private partnerships and for-profit organizations.  Applicants are required to submit non-binding letters of intent to apply between June 1, 2013 and June 28, 2013.  CMS will accept applications from June 14, 2013 until August 15, 2013.

To view the CMS Fact Sheet, click here.  The full announcement is available here.  

Reporter, Lauren Slive, Atlanta, +1 404 572 3592,

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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