HHS Announces $665 Million in ACA Healthcare Funding
The State Innovation Model initiative aims to help design and test new healthcare payment and service delivery model.
- The Department of Health and Human Services (HHS) is helping healthcare shift to solutions that improve quality, accessibility and affordability. One of the main ways this happens is through incentive payouts from the Affordable Care Act (ACA).
This week, HHS announced that it has awarded $665 million to 23 states, three territories and the District of Columbia. The funding is used to design and test healthcare payment and service delivery models that improve healthcare quality and lower costs. According to HHS Secretary Sylvia Burwell, together with awards released in early 2013 (nearly $300 million to 25 states), a total of 34 states, three territories and the District of Columbia are participating in efforts to support comprehensive state-based innovation in health system transformation.
“We are committed to partnering with states to advance the goals we all share: better care, smarter spending, and, ultimately, healthier people,” said Secretary Burwell in the release. “We’re seeing states do some very innovative things when it comes to improving the ways we deliver care, pay providers, and distribute information. These funds will support states in integrating and coordinating the many elements of health care – including Medicaid, Medicare, public health, and private health care delivery systems – to the benefit of patients, businesses, and taxpayers alike.”
This is part of the State Innovation Model initiative. It supports states that are pushing a transformation to improve healthcare. There are several ways that this can be accomplished. These include:
AMGA: Medical Groups Faced Workforce Challenges, High Expenses in 2022 EHRs Still Disrupt Nursing Workflows, But Nurses Warming to Tech 25% of Physicians Dissatisfied with Provider Compensation Rates • Improving primary care through Accountable Care Organizations, patient centered medical homes and integrated primary care and behavioral health services.
• Providing technical assistance and data to providers and payers that are focused on integrated, team-based care, or transition to value-based payment models.
• Creating unified quality measure score cards for payers and providers to align quality improvement and value-based methodologies.
• Expanding the adoption of health IT to improve care.
• Foster partnership with public, behavioral and primary healthcare providers.
• Strengthening healthcare workforce through education, training, primary care residencies and community health worker training.
Patrick Conway, MD, the deputy administrator for innovation and quality and chief medical officer for the Centers for Medicare and Medicaid Services, said that states are laboratories of innovation and serve as critical partners in transforming healthcare.
“States are large health care purchasers for their employees and residents, have broad regulatory authority over healthcare providers and payers, have the ability to convene multiple parties to improve statewide health delivery systems, and oversee public health, social, and educational services,” Conway said. “Partnering with states on health innovation has the potential to accelerate and transform health innovation in all of these areas.”
In a separate press release announcing the State’s involvement in the initiative ($20 million), Rhode Island Lt. Governor Elizabeth Roberts said the funding would allow for an acceleration in the transformation of healthcare payment and delivery systems in the State.
“This is an incredible opportunity for strategic federal investments that will ensure Rhode Islanders receive the highest quality care with better health outcomes in the years to come,” Roberts said. “I look forward to working in a unique public-private partnership with the Healthy Rhode Island steering committee to make this opportunity a reality.”
