The State Planning Grants to Promote Continuity of Care for Medicaid and CHIP Beneficiaries Following Incarceration is a funding opportunity under Section 206 of the Consolidated Appropriations Act, 2024. Administered by the Centers for Medicare & Medicaid Services (CMS), this initiative aims to help state Medicaid and Children’s Health Insurance Program (CHIP) agencies develop strategies to ensure continuous healthcare coverage and services for individuals transitioning out of incarceration. The focus is on operationalizing capabilities to comply with new federal mandates that prevent the termination of Medicaid and CHIP eligibility for incarcerated individuals, effective January 1, 2026, while improving systems for continuity of care during the transition.

The program provides funding through cooperative agreements, which will involve close collaboration between CMS and state agencies. Grants will be issued in two cohorts with deadlines on November 26, 2024, for the first cohort and March 17, 2025, for the second. A total of $106.5 million is available, with individual awards ranging from $1 million to $5 million for each applicant, covering a four-year period of performance. Up to 56 awards are expected to be made, and funding will be distributed in four annual increments.

Eligible applicants are state Medicaid agencies and CHIP agencies, including those in U.S. territories. For states where Medicaid and CHIP are administered by separate agencies, both agencies must collaborate on a single application. Tribal organizations may also participate if they work under the auspices of the state Medicaid or CHIP agency. Applicants may apply for either or both cohorts but can only receive one award per state.

The program's purpose is to support states in addressing operational barriers and developing systems to ensure continuous care for eligible Medicaid and CHIP beneficiaries during and after incarceration. This includes building capabilities to determine Medicaid or CHIP enrollment status upon incarceration, manage suspended coverage, and restore benefits upon release. States are also encouraged to establish IT systems that enable information sharing between public institutions, managed care plans, and Medicaid providers, to facilitate care transitions.

The funding can be used for activities such as assessing operational gaps, automating systems for Medicaid and CHIP enrollment, establishing claims processing protocols, and ensuring oversight and compliance with Medicaid and CHIP requirements. However, the funds cannot be used for direct provision of medical services, construction of correctional facilities, or improvements to facilities that are not directly related to healthcare services for incarcerated individuals.

To apply, state agencies must submit a project narrative that outlines their capacity to manage the planning grant, their current systems for ensuring continuity of care for Medicaid and CHIP beneficiaries post-incarceration, and a detailed work plan with measurable objectives. Applications must also include a budget narrative, organizational chart, and any relevant letters of support. All submissions must be made via Grants.gov.

Applications will undergo an initial review for completeness and eligibility, followed by a merit review based on criteria such as project design, feasibility, potential impact, and alignment with program goals. Successful applicants will be notified and awarded funds in two stages based on the cohort they applied to, with the first cohort expected to receive awards by February 15, 2025, and the second by July 15, 2025.

Award recipients must comply with federal reporting requirements, including regular progress updates, financial reports, and compliance with nondiscrimination laws. Recipients must also ensure that any health information technology acquired through the grant complies with federal standards for interoperability and cybersecurity.