Applicants are invited to apply for the Innovation in Behavioral Health (IBH).
Donor Name: Centers for Medicare & Medicaid Services
State: All States
County: All Counties
Type of Grant: Grant
Deadline: 07/03/2026
Size of the Grant: More than $1 million
Grant Duration: 5-10 Years
Details:
The Innovation in Behavioral Health (IBH) Model (the “Model”) for Cohort II Recipients1 is a seven-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 for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health conditions and/or substance use disorders (SUDs). The IBH Model framework for integrated care in BH settings will:
- Build and strengthen connections to physical health (PH) care for beneficiaries;
- Promote screening and referral for needs that impact health;
- Identify beneficiary issues that interfere with diagnosis, management, and treatment of health conditions, such as food, housing, and transportation needs;
- Leverage care management and care coordination to increase access to and engagement with primary care and community services; and
- Encourage investments in certified health information technology (health IT) products and infrastructure improvement for their practice and patient population.
CMS will evaluate the Model’s ability to:
- Improve quality of care;
- Increase access to care;
- Achieve greater balance in outcomes;
- Reduce avoidable emergency department and inpatient utilization, and thereby reduce federal program spending under Medicare and Medicaid; and
- Strengthen health IT systems capacity
Funding Information
- Total Available Funding: $37.5 million (subject to availability of funds)
- Estimated Maximum Award Amount: $7.5 million per Recipient.
Grand Period
- Start Date: January 1, 2027
- End Date: December 31, 2033.
Eligibility Criteria
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.
- Government Organizations
- State governments.
For more information, visit Grants.gov.


