States Get Federal Backing To Build More Efficient, High Quality Medicaid Systems, USA

HHS Secretary Mike Leavitt today awarded $103 million to 27 states across the nation to fund implementation of new ways to improve Medicaid efficiency, economy and quality of care.

States will use the funds to implement innovative systems to get more value out of the money they spend providing health care to their low-income elderly, children and disabled citizens.

Congress approved a total of $150 million for these Medicaid “transformation grants” in the Deficit Reduction Act of 2005 (DRA) to be distributed over fiscal years 2007 and 2008. Today’s award of the first $103 million will be followed later in the year with a second solicitation for the remaining $47 million. States will receive the funds over the next two years.

“These transformation grants express the core goal of this administration to give states the kind of flexibility they need to deliver high quality care in an efficient and economical way,” Secretary Leavitt said. “With these grants states can streamline and modernize their systems, stabilize the exponential growth of the program and protect it into the future.”

In part, the funds will support more widespread use of electronic health care records that can be accessed by whole treatment teams, a move within the medical community to improve quality of care and reduce the potential for medical errors.

Permissible uses of grant funds included:

– Reducing patient error rates through the implementation of technology (electronic health records, clinical decision support tools or e-prescribing programs).

– Improving rates of collection from estates of amounts owed under Medicaid.

– Reducing waste, fraud, and abuse under Medicaid, such as reducing improper payment rates.

– Increasing the utilization of generic drugs through education programs and other incentives. This reduces Medicaid expenditures for covered outpatient drugs, particularly in the categories of greatest drug utilization.

– Improving access to primary and specialty physician care for the uninsured using integrated university-based hospital and clinic systems.

– Implementation of a medication risk management program as part of a drug use review program.

The awards granted today vary in amount depending on each state’s application. Some states submitted more than one grant proposal and will receive funds for each project.

No state matching funds are required for these special grants. More information on the grants and how state Medicaid agencies can apply for the next round of awards is on the Centers for Medicare & Medicaid Services Web site at: www.cms.hhs.gov/MedicaidTransGrants.

State awards are as follows:

Alabama - Together for Quality - Health Information Systems - $7,587,000

Arizona - Medicaid Health Information Exchange Utility Project - $11,749,500

Arkansas - Electronic Verification of Proof of Citizenship - $285,513

Connecticut - Health Information Exchange and e-Prescribing - $5,000,000

DC - Comprehensive Medicaid Integration (Patient Data Hub) - $9,864,000

Florida - GenRx Expansion - $1,737,861

Hawaii - Open Vista ASP Network - $3,188,535

Illinois - Predictive Modeling System - $4,849,200

Indiana - Medicaid Estate Recovery Centralization and Automation Project - $124,880

Kansas - Using Predictive Modeling Technology to Improve Preventive Healthcare in the Disabled Medicaid Population - $906,664

Kentucky - Health Information Partnership - $4,987,583

Maryland - Automated Fraud and Abuse Tracking - $576,228

Massachusetts - Secure Verification of Citizenship through Automation of Vital Records - $3,950,440

Michigan - One Source Credentialing - $5,208,759
Michigan - Expansion of Vital Records Automation and Integration Into Medicaid - $3,929,317

Minnesota - Communication and Accountability for Primary Care System (CAPS) - $2,843,340

Mississippi - As One - Together for Health - $1,688,000

Montana - Enhancing EHR - Clinical Decision Making - $1,481,152

New Jersey - Medical Information for Children - $1,516,900

New Mexico - e-Prescribing - $855,220
New Mexico - Electronic Health Record Project - $712,301

New York - Fingerprint Authentication at Point of Service - $5,500,000

North Dakota - Web-based Electronic Pharmacy Claim Submission Interface - $75,000

Rhode Island - IT Infrastructure Transformation - $725,253

Tennessee - Electronic Prescription Pilot Project - $674,204

Texas - Electronic Health Passport for Foster Care - $4,000,000

Utah - Developing a Pharmacotherapy Risk Management System with an Electronic Surveillance Tool - $2,881,662

West Virginia - Healthier Medicaid Members through Personal Responsibility - $1,937,110
West Virginia - Healthier Medicaid Members through a Stronger Medicaid Program - $1,731,680
West Virginia - Healthier Medicaid Members through Health Systems Improvement - $3,895,730
West Virginia - Healthier Medicaid Members through Applied Technology - $1,766,280
West Virginia - Healthier Medicaid Members through Enhanced Medication Mgmt - $4,287,110

Wisconsin - Health Information Exchange Initiative - $3,043,272

Total - $103,559,694

http://www.hhs.gov

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