NOFO Released for “Innovation in Behavioral Health Model”

On January 18, 2024, the Centers for Medicare & Medicaid Services announced a new innovation model to test approaches for addressing the behavioral and physical health, as well as health-related social needs, of people with Medicaid and Medicare. The Notice of Funding Opportunity (NOFO) was posted June 17, 2024, and applications are open until September 9, 2024.

This bidirectional health home integration approach will focus on the integration of physical and behavioral health within community-based behavioral health settings to improve overall health outcomes. An additional goal will be to have alignment in payment for integrated behavioral health and physical health services provided to patients and families. See the following description as written in the NOFO: 

“The Innovation in Behavioral Health (IBH) Model (the “Model”) is an eight-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 , through its Center for Medicare & Medicaid Innovation (Innovation Center), will select up to eight state Medicaid agencies (SMAs) to participate in the Model. Implementation will begin in January 2025 and end in December 2032. The Model will have an eight-year performance period, which will be comprised of a three-year pre-implementation period along with a five-year implementation period. Up to $7.5 million dollars in cooperative agreement award funding will be available to each selected recipient over the course of the eight years.” 

To receive additional information and updates, or if you have questions about the Innovation in Behavioral Health Model, please see the resources below:

• Email: IBHModel@cms.hhs.gov 
• Sign Up for email updates from the Innovation in Behavioral Health Model team