The Centers for Medicare and Medicaid Services (CMS) State Innovation Models Initiative provides funding to support states in developing and testing innovative healthcare payment and service delivery models. States can apply for one of two types of awards - planning grants of $1-3 million to support model design or testing grants of $20-60 million over 3 years to implement models. The goal is to engage multiple payers and stakeholders to transform healthcare delivery from a volume-based system to one that rewards better health outcomes at lower cost. States must demonstrate how their models will achieve improved health, care experience and affordability through payment and delivery system reform.