States can now apply for health IT Medicaid funding, CMS says

Diana Manos, Senior Editor

The Centers for Medicare and Medicaid Services is now releasing healthcare IT funding from the stimulus package to state Medicaid programs.

According to a CMS letter mailed Wednesday to state Medicaid directors, the American Recovery and Reinvestment Act enables the government to pay a 100 percent federal financial participation (FFP) match to states that help Medicaid providers adopt, implement or upgrade certified electronic health record technology to demonstrate meaningful use.

It will also pay a 90 percent FFP match to cover a state’s administrative costs for running an HIT Medicaid incentive program. States may now request the 90 percent FFP match for administrative planning activities, according to the letter.

Medicaid directors should contact their CMS regional office for further guidance and maintain ongoing communication while initiating planning activities. State health IT incentive programs should be part of larger statewide efforts to promote healthcare IT use and exchange.

CMS advised states who plan to apply for a FFP match to plan how they will audit their healthcare IT incentive payment programs for errors.

CMS is working on a final rule, due by the end of the year, with more information on how Medicaid providers will have to show meaningful use to qualify for health IT incentive payments.

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