Healthcare providers and payers may be salivating today with the news that the Center for Medicare & Medicaid Innovation (CMMI) – created under the Affordable Care Act and funded at $10 billion – announced a new $1 billion funding opportunity for innovations with promise to improve healthcare outcomes and reduce costs. The Health Care Innovation Award solicitation follows a similar $1 billion round awarded last year to slightly more than 100 projects throughout the nation. Adding an interesting new wrinkle, the latest round is accentuating the focus on new payment models, yet another clear sign that reducing costs is becoming a driver of the Triple Aim and that CMS expects to see more than improved outcomes in proposals. All applicants will have to submit the design of their proposed payment model that would support their service delivery as part of their packages. The project is seeking models in 4 specific areas. These include those that focus on Medicare, Medicaid and CHIP populations and populations with special needs, and the agency has set priority populations within each. The models also including those that focus on transforming financial and clinical models and that seek to improve population health. Organizations interested in applying must submit their letter of intent by June 28th with applications due August 15th. If the last round of these grants is any indication, the competition will be intense.  Applicants should take special pains to fully understand what the CMMI objectives are here before putting pen to paper on a proposal.