CONCORD -- Gov. Maggie Hassan announced today that the state Department of Health and Human Services has been awarded up to $1.6 million in federal funds to develop a State Health Care Innovation Plan to improve quality and reduce growth in health care costs through improved coordination.

The grant program is issued by the Center for Medicare and Medicaid Innovation through the Affordable Care Act.

The governor's office said the funds "will allow New Hampshire to develop a strategy to transform the health care delivery system through multi-payer payment reform and other state initiatives."

"Innovating in health care is critical for reducing the growth in health care costs and improving the quality of care for all of our people," Hassan said in a prepared statement. "New Hampshire has led the way in health care innovation through initiatives like accountable care organizations, and these federal funds will allow us to develop a comprehensive strategy to continue our progress and strengthen our health care system."

The governor's office said New Hampshire's plan will lay out a framework for aligning consumer access across delivery system "silos," payer support for outcomes-based long term care services, and global accountability for cost-effectiveness and outcomes."

The governor's office said:

"A central tenet of the transformation activities will target opportunities for improved coordination across systems for individuals who are either in need of or at-risk for needing long-term support services; this population will be targeted due to the complex health needs and the cross-cutting nature of the services and payments needed to coordinate their care. Through this process, New Hampshire will leverage ongoing activities in the development of the new system and align the ongoing state and national quality initiatives with the new system."

New Hampshire has six months to submit its plan to the Centers for Medicare and Medicaid Services and will use its Health Care Innovation Plan to apply for an anticipated second round of awards

For more information on the grant, visit: http://innovation.cms.gov/initiatives/State-Innovations <http://innovation.cms.gov/initiatives/State-Innovations> . To learn more about other innovative models being tested by the CMS Innovation Center, please visit: innovation.cms.gov.

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State gets 1.6m grant for 'Health Care Innovation Plan'