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Medicaid Gets $3 Billion Funding Boost for Technology

A rule finalized by CMS last week will extend and increase funding to states for modernizing Medicaid technology systems.

Under the Affordable Care Act, states are required to build new Eligibility and Enrollment systems or modernize existing ones. The final rule anticipates federal net costs of approximately $3 billion between 2016 and 2025, depending on state adoption rate. Only nine states will need to upgrade, rather than replace, their current E&E systems. Those states are Colorado, Florida, Idaho, Montana, New Mexico, North Carolina, Oklahoma, Texas and Utah.

The final rule assumes savings associated with reusable technology in both the development and operation of new systems. Savings per state upon adopting the rule is estimated at $16.6 million per year.

Source: Office of the Federal Register. Medicaid Program; Mechanized Claims Processing and Information Retrieval Systems (90/10) Final Rule