CMS Finalizes Rule Allowing Permanent Enhanced Funding for Medicaid Eligibility Systems

CMS released a final rule that permanently extends the 90% federal match for design, development, and installation activities and a 75% federal match for maintenance and operations activities for state Medicaid eligibility and enrollment (E&E) systems. The enhanced funding was previously set to expire on December 31, 2015. The final rule also allows states to use the 90% match for procuring Commercial Off-the-Shelf systems, including initial licensing fees and costs to analyze, configure, install and integrate the software. Additionally, the rule updates standards and funding conditions with an emphasis on modularity and reuse, and aligns requirements across Medicaid E&E systems, Medicaid Management and Information Systems, and Health Information Technology for Economic and Clinical Health to create an enterprise-wide approach.

Arkansas: Governor Outlines Plan for Medicaid E&E System

In a letter to State legislative leaders, Governor Asa Hutchinson (R) asked the Department of Human Services to "pause development of additional features" for the State's new Medicaid eligibility and enrollment (E&E) system until a path forward with Medicaid reform is more clear. Responding to a consultant's review of the E&E system, the Governor noted that the cost of the project has doubled to $220 million due to "mismanagement and federally mandated changes" and identified additional steps he is taking to address the issue, including: putting the remainder of the current IT contract out to bid, and establishing oversight committees to supervise the remainder of the project and to review all future IT contracts over $50 million.