CMS Issues Guidance on Translation and Interpretation Funding - July 7, 2010

On July 1, the Centers for Medicare and Medicaid Services (CMS) issued a State Medicaid Director and State Health Official letter on a Children’s Health Insurance Program Reauthorization Act (CHIPRA) provision that would provide an increased federal funding match rate of 75 percent or more for translation or interpretation services for the “enrollment of, retention of, and use of services” by non-English speakers of CHIP and Medicaid. The increased match is available for expenditures related to administration of Medicaid and CHIP plans. There are some limitations, however. For example, CHIP administrative expenditures are capped at ten percent, potentially limiting the amount of additional funds available to them. In addition, if translation or interpretation services are provided by a contracted managed care entity and funded through a capitated payment from the state, related costs in the rate are not eligible for the increased match because the capitated payment is considered a benefit expenditure, not an administrative expenditure.