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Washington Highlights

CMS Announces $1 Billion for Health Care Innovation Awards

May 17, 2013—The Centers for Medicare & Medicaid Services (CMS) May 15 released a Funding Opportunity Announcement for round two of the Health Care Innovation Awards. Under this announcement, CMS will spend nearly $1 billion on awards to projects that test new payment and service delivery models that will deliver better care and lower costs for Medicare, Medicaid, and Children’s Health Insurance Program (CHIP) enrollees.  Interested organizations may submit non-binding letters of intent (LOIs) to apply from June 1 until June 18, and applications will be accepted from June 14 until August 15.

In this second round, CMS is specifically seeking proposals in four 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.
  • Models that improve the health of populations defined geographically (health of a community), clinically (health of those with specific diseases), or by socioeconomic class through activities focused on engaging beneficiaries, prevention (for example, a diabetes prevention program or a hypertension prevention program), wellness, and comprehensive care that extend beyond the clinical service delivery setting.

As part of the application, all applicants must submit the design of a payment model that is consistent with the new service delivery model being proposed.  Beginning on May 28, CMS will hold a series of webinars to provide more information on applying for the awards.

CMS awarded 107 Health Care Innovation Awards in 2012 [see Washington Highlights May 11, 2012, and June 22, 2012].  AAMC member institutions received nearly half of the round one awards.


Jane Eilbacher
Policy and Regulatory Specialist
Telephone: 202-828-0896


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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.

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Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806