Innovation in Behavioral Health (IBH) Model | CMS 2Q2 25 001

Opportunity Information: Apply for CMS 2Q2 25 001

The Innovation in Behavioral Health (IBH) Model is a voluntary, eight-year initiative from the Centers for Medicare and Medicaid Services (CMS), run through the CMS Innovation Center, that is designed to strengthen integrated care in specialty behavioral health settings. The basic idea is to help behavioral health organizations deliver more coordinated, whole-person care for adults who have moderate to severe mental health conditions and/or substance use disorders, while also changing how care is paid for. Instead of relying only on traditional fee-for-service approaches, the model tests a value-based payment structure that is intentionally aligned across Medicaid and Medicare, including for people who are enrolled in both programs (dually eligible beneficiaries). By aligning incentives across these payers, CMS is aiming to reduce fragmentation, improve outcomes, and make it easier for behavioral health providers to deliver care that addresses physical health, behavioral health, and social needs in a more connected way.

CMS plans to select up to eight state Medicaid agencies to participate. Participation is limited to state Medicaid agencies (including all 50 states, Washington, DC, and certain US territories: American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the US Virgin Islands). The selected agencies must have the legal authority and operational capacity to accept and manage a cooperative agreement award. States can choose to apply for statewide participation or propose a sub-state region, but any regional approach must be approved by CMS as part of the application review process.

The model runs from January 2025 through December 2032 and is structured around an eight-year performance period that is split into two major phases. First is a three-year pre-implementation period, which is intended for planning, readiness activities, partner engagement, infrastructure development, and setting up the operational and payment components needed to execute the model. This is followed by a five-year implementation period, when the value-based payment approach and integrated care delivery framework are put into practice and evaluated over time.

Funding is provided through a discretionary cooperative agreement (not a formula grant), with up to $7.5 million available per selected recipient across the full eight-year period. In practical terms, the cooperative agreement structure signals that CMS expects ongoing collaboration, reporting, and active oversight as states build and carry out the model. The opportunity is listed under Funding Opportunity Number CMS 2Q2 25 001, CFDA 93.610, and it was created on June 17, 2024, with an application closing date of September 9, 2024. Overall, the IBH Model is a targeted effort to help states and specialty behavioral health systems move toward integrated, accountable care supported by payment approaches that reward better coordination and outcomes for high-need adult populations.

• The Centers for Medicare Medicaid Services in the affordable care act sector is offering a public funding opportunity titled "Innovation in Behavioral Health (IBH) Model" and is now available to receive applicants.
• Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 93.610.
• This funding opportunity was created on 2024-06-17.
• Applicants must submit their applications by 2024-09-09. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
• Each selected applicant is eligible to receive up to $7,500,000.00 in funding.
• The number of recipients for this funding is limited to 8 candidate(s).
• Eligible applicants include: State governments.

Apply for CMS 2Q2 25 001

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