CMS is allowing states to test two new financial models intended to improve care coordination and reduce costs for individuals enrolled in both Medicare and Medicaid (known as “dual eligibles” or “Medicare-Medicaid enrollees”). The models are designed to better align the financing of these two programs and integrate primary, acute, behavioral health, and long term services and supports for Medicare-Medicaid enrollee. Specifically, the two models are: (1) a Capitated Model, under which a state, CMS, and a health plan enter into a three-way contract, and the plan receives a prospective blended payment to provide comprehensive, coordinated care; and (2) a Managed Fee-for-Service Model, under which a state and CMS enter into an agreement allowing the state to benefit from savings resulting from initiatives designed to improve quality and reduce costs for both Medicare and Medicaid. CMS will test these qualifying state plans serving collectively up to 2 million dual eligibles to determine whether the models save money while preserving or enhancing enrollee quality of care.