Federal support for states to develop and upgrade Medicaid IT systems

The Department of Health and Human Services (HHS) announced two steps to help states assure a simple and seamless enrollment experience for consumers who qualify for Medicaid or who are shopping for health insurance in the exchanges under the Affordable Care Act.

First, HHS proposed new federal funding that will be available to all states to streamline and upgrade their Medicaid eligibility systems in preparation for the changes resulting from the Affordable Care Act in 2014.

Second, HHS announced guidance to help states design and implement the information technology (IT) needed to establish exchanges. These systems will help enroll people who qualify for Medicaid or the Children's Health Insurance Program (CHIP), tax credits or cost-sharing reductions available through the Affordable Care Act.

These investments will support a simple, coordinated, consumer-oriented system for individuals, families and businesses to sign up for the health insurance plan that they choose. They complement the competitive funding announcement released on October 29, to create cooperative agreements with up to five states to create models for IT infrastructure that all states can use. As states prepare for 2014, they have requested early guidance and funding assistance for their technology projects, particularly with respect to eligibility and enrollment systems.