Innovation in Behavioral Health (IBH)

The Centers for Medicare & Medicaid Services (CMS), a division of the U.S. Department of Health and Human Services, has issued a forecasted funding opportunity titled Innovation in Behavioral Health (IBH), under opportunity number CMS-2Q2-26-001. Administered through the Center for Medicare & Medicaid Innovation, this cooperative agreement initiative supports the integration of behavioral health services into Medicaid and Medicare systems using a value-based payment model. The goal of the IBH Model is to foster the development of integrated care models within specialty behavioral health settings that serve adults with moderate to severe mental health conditions and/or substance use disorders, particularly among Medicaid, Medicare, and dually eligible beneficiaries. The IBH Model is designed as a seven-year initiative divided into two distinct phases: a two-year Pre-Implementation Period from January 2026 to December 2027, and a five-year Implementation Period from January 2028 to December 2032. During this time, the selected state Medicaid agencies (SMAs) will work to implement and test a care model that aligns Medicaid and Medicare payments to promote comprehensive service delivery and improve health outcomes for complex behavioral health populations. Funding will be delivered through cooperative agreements with up to five SMAs eligible for selection. Each awardee may receive up to $7.5 million over the seven-year project duration, totaling an estimated program funding pool of $37.5 million. Funding is intended to support planning, infrastructure development, implementation, and evaluation activities associated with the integrated model. There is no cost-sharing or matching requirement for applicants. Eligible applicants are limited to state Medicaid agencies from the 50 U.S. states, the District of Columbia, and U.S. territories including American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. SMAs may propose to operate the model at the state level or within designated sub-state regions, subject to CMS approval during the review process. This opportunity is currently in forecasted status with an expected funding announcement release date of June 18, 2025, and an estimated application due date of September 8, 2025. Awards are expected to be made before January 1, 2026, the planned start date of the project. The cooperative agreement will be listed under Assistance Listing Number 93.610. Contact for this opportunity is available via the email IBHModel@cms.hhs.gov. CMS encourages potential applicants to monitor the official Grants.gov listing for updates and publication of the full Notice of Funding Opportunity. No additional submission requirements, Q&A sessions, or pre-application deadlines have been provided at this forecast stage. Interested SMAs should prepare for a comprehensive application process aligned with CMS's goals of delivering better behavioral health outcomes through integrated, value-based models of care.