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New State Funding Opportunity Released

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Earlier this month, the Centers for Medicare and Medicaid Services (CMS) announced a second cycle of the State Flexibility to Stabilize the Market Grant Program. A follow-up to grants initially provided in 2018, this round of funding seeks to “enhance and support the role of states” in implementation and regulation relative to guaranteed issue and renewability provisions and Essential Health Benefits (EHBs). Through these grants, CMS aims to support innovation as well as compliance with federal requirements.

All states and the District of Columbia are eligible to apply for a total of $23.7 million in funding. Minimum awards will be $445,000, with additional funding to be made available if not all states are funded.

States can use funding for “planning and implementation” activities such as:

In considering the funding opportunity and developing grant proposals, state policymakers should be mindful of the needs and opportunities in their state as well as the impact of the current landscape. Some Questions states should consider include:

States seeking to apply for a grant must submit mandatory letters of intent by December 11, 2020 and grant applications (via http://www.grants.gov) by 3pm Eastern Time on January 20, 2021. CMS anticipates awarding two-year grants on April 1, 2021.

More information about the grant, the funding formula and how to apply is available on the CMS website. To discuss this opportunity with one of PCG’s subject matter experts, contact us at HealthPolicyNews@pcgus.com.

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