November 12, 2025
What’s new: CMS is seeking additional states to take part in a whole-person, integrated care approach to mental health, substance use disorder, and physical health services for people with Medicaid and Medicare coverage, with the aim to comprehensively address root causes of health issues before they increase in severity.
Why it matters: Through early screening for behavioral health conditions and connecting people with preventive services, IBH can help people avoid costly emergency room visits and hospitalizations while supporting a more efficient, prevention-focused health system.
What to expect: Up to five additional states will be selected for this second cohort of the state-led model, joining Michigan, New York, and South Carolina; award notices are expected to be issued in September 2026 followed by a seven-year model implementation period from 2027-2033.
The big picture: Through the interprofessional care teams, people will experience an integration of services that will bridge the gaps between physical and behavioral health. The model enables a “no wrong door” approach, meaning that regardless of how patients enter care, they will have access to all available services. Through this practice, IBH also aims to reduce overall program expenditures.
Additional details: A quarter of all people enrolled in Medicare experience mental illness, and 40 percent of all adults enrolled in Medicaid experience mental illness or SUD. Medicaid and Medicare populations also experience higher than average rates of SUD. People with behavioral health needs often have trouble accessing necessary health care, have unmet health-related social needs, experience poor health outcomes, and have premature mortality.
Through the IBH Model, CMS works with state Medicaid agencies (SMAs), providing cooperative agreement funding to help SMAs develop necessary infrastructure and capacity to implement the model in their state and recruit Practice Participants to deliver care to beneficiaries with moderate to severe behavioral health conditions. Practice Participants also receive funding to support necessary administrative and practice transformation activities to successfully implement the model.
For more information about the IBH Notice of Funding Opportunity, including eligibility requirements, visit grants.gov or email IBHModel@cms.hhs.gov. Interested applicants should submit their applications by June 3, 2026. More details will be shared during a forthcoming webinar on December 11, 2025. Webinar registration is now open.
Stay up to date on upcoming model announcements, events, and resources by signing up for the IBH Listserv.
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