HHS dedicates $275M to state testing of payment models

The U.S. Department of Health & Human Services is helping states design and test various payment models to improve quality of care and lower costs. Through its new healthcare innovation initiative, HHS will award a total of $275 million to states either to test existing models or to provide technical assistance to determine the best payment model in the market. States will work with various stakeholders, including health insurance companies, to develop multi-payer payment and delivery system improvements.

"Given the broad scope of these multi-payer models, successful innovations are expected to benefit both privately and publicly insured residents of participating states," HHS said in a statement. "These awards are an incentive for states to recruit partners and accelerate the work that many of them are already doing to improve healthcare and lower costs," Centers for Medicare & Medicaid Services Acting Administrator Marilyn Tavenner said. Statement