Innovation in Behavioral Health (IBH)
Grant Opportunity Analysis
The Centers for Medicare & Medicaid Services (CMS) has announced a Notice of Funding Opportunity (NOFO) for the Innovation in Behavioral Health (IBH) Model, targeting state Medicaid agencies (SMAs) to implement a voluntary service delivery and value-based payment (VBP) model. This initiative aims to enhance integrated care in specialty behavioral health settings for adult Medicaid, Medicare, and dually eligible beneficiaries facing moderate to severe mental health conditions and/or substance use disorders (SUDs), with objectives including improved care quality, increased access, and reduced emergency department utilization. The program is significant for advancing health IT systems and fostering a coordinated approach to managing chronic conditions such as diabetes and hypertension within behavioral health frameworks. Up to $7.5 million in cooperative agreement funding is available for each selected recipient over a seven-year period, with applications due by June 3, 2026. Interested applicants can reach out to IBHModel@cms.hhs.gov for further information.
Eligible Applicants
Eligible applicants are state Medicaid agencies (SMAs) with the authority and capacity to accept the Cooperative Agreement award funding. Eligible applicants are all 50 states, Washington DC, and U.S. territories. Eligible U.S. territories include American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands. Applicants may select to participate at the state level or designate a sub-state region, subject to CMS approval during the application review.