The Innovation in Behavioral Health (IBH) Model (the “Model”) for Cohort II Recipients 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 and settings for adult Medicaid, Medicare, and dually eligible beneficiaries with moderate to severe mental health conditions and/or substance use disorders (SUDs).

The Centers for Medicare & Medicaid Services (CMS), through its Center for Medicare & Medicaid Innovation (Innovation Center), will select up to five state Medicaid agencies (SMAs) to participate in the Model. The Model will have a seven-year performance period, which will be comprised of a two-year Pre-Implementation Period (beginning January 2027 and ending December 2028) along with a five-year Implementation Period (beginning January 2029 and ending December 2033). Up to $7.5 million dollars in cooperative agreement award funding will be available to each selected Recipient over the course of the seven years.