Opportunity Information: Apply for PR PRP 21 001

The State Flexibility to Stabilize the Market Cycle II Grant Program is a federal discretionary grant opportunity from the U.S. Department of Health and Human Services (HHS), administered through the Centers for Medicare and Medicaid Services (CMS) Consumer Information and Insurance Oversight group. Its purpose is to strengthen state oversight of the private health insurance market by giving states funding to implement and plan for key federal market reforms and consumer protections required under Part A of Title XXVII of the Public Health Service (PHS) Act. In practical terms, the program is meant to help states bring their laws, regulations, and administrative procedures into alignment with federal standards and to improve how effectively they regulate health insurers operating in their markets.

A central theme of the grant is flexibility paired with accountability. CMS is offering resources so states can take a more active and capable role in enforcing and operationalizing federal requirements, while also pursuing innovative approaches that support a set of pre-selected market reforms and consumer protections under the PHS Act. The emphasis is not simply on compliance for its own sake, but on building state capacity to run a stable, well-regulated private insurance market where consumer protections are meaningful in day-to-day operations. That can include updating regulatory frameworks, improving operational processes, strengthening enforcement tools, and planning for effective implementation of reforms that affect how insurers design and administer coverage.

The opportunity is open only to state governments, reflecting the program's goal of reinforcing the primary role states play as insurance regulators. CMS anticipated making awards broadly across the country, with an expected 51 awards, which typically corresponds to the 50 states plus the District of Columbia or additional eligible jurisdictions as defined by the program. The total funding is structured with an award ceiling of $23,700,000, indicating the maximum amount available per award under this opportunity, depending on CMS decisions and each applicant's proposed scope of work.

From a funding mechanics standpoint, this is a grant (not a contract), categorized under the health funding activity area and linked to CFDA number 93.413. The funding opportunity number is PR PRP 21 001. The notice was created on November 6, 2020, with an original application deadline of January 20, 2021 at 3:00 PM Eastern Time. While the specific reforms and protections are referenced as "pre-selected" under Part A of Title XXVII of the PHS Act, the overall framing makes clear that funds are intended for state-level implementation and planning activities that directly support federal market reform requirements and consumer-focused protections in the private health insurance market.

Overall, the grant is designed as a capacity-building and market-stabilization tool. By funding state efforts to modernize and align regulatory systems with federal standards, CMS aims to promote more consistent enforcement of consumer protections, reduce regulatory gaps, and improve the functioning and stability of private health insurance markets across states, while still allowing states room to tailor implementation strategies to their own market conditions and regulatory structures.

  • The Department of Health and Human Services, CMS-Consumer Information Insurance Oversight in the health sector is offering a public funding opportunity titled "Grants to Support States in Providing Added Flexibility to Strengthen the Private Health Insurance Market through Implementation of Market Reforms under Part A of Title XXVII of the Public Health Service Act," and is now available to receive applicants.
  • Interested and eligible applicants and submit their applications by referencing the CFDA number(s): 93.413.
  • This funding opportunity was created on Nov 06, 2020.
  • Applicants must submit their applications by Jan 20, 2021 300 PM Eastern U.S. Time. (Agency may still review applications by suitable applicants for the remaining/unused allocated funding in 2026.)
  • Each selected applicant is eligible to receive up to $23,700,000.00 in funding.
  • The number of recipients for this funding is limited to 51 candidate(s).
  • Eligible applicants include: State governments.
Apply for PR PRP 21 001

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