CMS Issues Guidance to States on Medicaid Incentive Payments for HIT - September 8, 2009

On September 1, the Centers for Medicare and Medicaid Services (CMS) issued a State Medicaid Directors letter that outlines the activities states must undertake before they can begin making Medicaid Health Information Technology (HIT) incentive payments. The letter also defines HIT-related planning activities that are eligible for a 90% federal match under the Medicaid incentive payment provision. To be eligible for the matching payments, states will be required to submit Medicaid HIT plans. States are directed to consult stakeholders, including safety net providers, in developing these plans. In addition to the letter, CMS provides further details on the following:

• The development of HIT plans
• The relationship between states’ existing Medicaid IT systems and HIT adoption
• The roles of CMS and the states in implementing HIT and administering payments
• The recently-announced regional extension center and state information exchange grants
• Activities for which states may claim the enhanced administrative match
• Other HIT resources