Blog
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12-06-24

Funding Opportunity: State Planning Grants to Promote Continuity of Care Following Incarceration

by NASHP, HARP

In September, the Centers for Medicare and Medicaid Services (CMS) announced a new funding opportunity of $106.5 million in planning grants to support states in promoting continuity of care for people transitioning from incarceration to community. States can use the grants to fill operational gaps, drive collaboration, and improve oversight as states implement new policy changes. One of the most urgent uses for states may be supporting implementation of new national requirements for Medicaid and CHIP coverage of certain services for youth leaving incarceration, which take effect January 1, 2025. The following chart provides a snapshot of key information on the grant opportunity.

This project is a partnership between NASHP and The Health Reentry Project (HARP).

Authorizing legislation	Consolidated Appropriations Act of 2024, Section 206(a)
Goals	Promote continuity of care for individuals following incarceration and strengthen equitable access to health care Provide states with funding needed to comply with new statutory requirements
Total funding	$106.5 million
Number of awards	CMS anticipates making up to 56 awards
Anticipated award size	$1 million to $5 million Amount depends on: Total budget, available funds, costs proposed, funding need
Eligible recipients	State and territorial governments, specifically Medicaid and Children’s Health Insurance Program (CHIP) agencies
Timing	CMS will be accepting and approving applications from states in two cohorts. Cohort 1: applications are due November 26, 2024 Cohort 2: applications are due March 17, 2025 Fifty percent of funds will be reserved for awards for the second cohort. If a state applies under the first cohort and is not awarded funds, the state may apply again during the second cohort
Funding structure	Cooperative agreement structure, amount based on budget and need
Examples of eligible partners (including subrecipients and contractors)	CMS does not require, but recommends that state Medicaid and CHIP agencies collaborate with: Non-federal public institutions (i.e. state-operated prisons, local, tribal, and county jails, and youth correctional or detention facilities) State human services agencies Medicaid managed care plans Providers Community-based organizations
Preference	As part of their applications, states must provide an overview of all relevant funding sources for initiatives promoting continuity of care for beneficiaries following incarceration including through any Medicaid authorities, such as section 1115 demonstration authority. Scoring preference will be given to states with less progress and those demonstrating higher need.
Allowable uses of funds	Funds may be used to: Identify and address operational gaps needed to comply with statutory requirements, including new youth changes (CAA 2023 Sec. 5121/5122) and new suspension requirements (CAA 2024 Sec. 205) Establish standardized processes and automated systems, including for: Determining Medicaid/CHIP eligibility and/or facilitating enrollment/renewal of coverage for incarcerated populations Establishing claims processing and prior authorization request protocols Restoring suspended Medicaid or CHIP coverage when a person is released from incarceration. Investing in information technology to support bi-directional information sharing between relevant entities to support care transitions and treatment coordination Establishing oversight and monitoring processes to ensure compliance.
Prohibited uses of funds	Funds may not be used to: Pay for or directly administer health care services Build prisons, jails, or other carceral facilities or pay for related improvements, other than: Improvements that are for directly meeting the health care needs of Medicaid-eligible incarcerated individuals
Period of performance	Grant periods are four years, comprised of four one-year budget periods Cohort 1: March 1, 2025 through February 28, 2029 Cohort 2: August 1, 2025 through July 30, 2029
Relevant materials	Notice of Funding Opportunity CMS-2T2-25-001 (grants.gov) CMS Webinar (with transcript) (medicaid.gov) CMS Webinar slides (medicaid.gov) CMS Questions and Answers document (medicaid.gov)