Bookmark and Share

April 2007

Twenty-Seven States Awarded Medicaid Transformation Grants

On January 25, the Centers for Medicare and Medicaid Services (CMS) announced that 27 states are recipients of a total of $103 million in federal Medicaid Transformation Grants. The Deficit Reduction Act of 2005 (DRA) authorized $150 million in Transformation Grants over Fiscal Years 2007 and 2008 to support innovative methods for improving the efficiency and effectiveness of Medicaid. CMS will issue a second grant solicitation for the remaining $47 million.

The majority of state Transformation Grants focus on health information technology and exchange, fraud and abuse reduction, and chronic care management. Several states are using their grants to create systems to reduce potential enrollment delays and administrative burdens associated with verifying U.S. citizenship. Under the DRA, federal law now requires that most individuals applying for or renewing their Medicaid eligibility provide evidence documenting citizenship. Since the implementation of this requirement on July 1, 2006, a number of states have experienced reductions in Medicaid enrollment due to eligibility delays or denials associated with the documentation requirements. Arkansas, Massachusetts, Michigan, and Rhode Island are using their Transformation Grants to develop systems to electronically verify citizenship and streamline the documentation process.

More information on the Medicaid Transformation Grants and copies of states’ applications are available on the CMS website.