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January 2010 St@teside

States Receive Federal Support for Electronic Health Record Implementation

Since November 2009, 13 states and the U.S. Virgin Islands have learned that their Medicaid programs will receive federal matching funds to support state planning activities needed for implementation of the electronic health record (EHR) incentive program established by the American Recovery and Reinvestment Act of 2009 (Recovery Act).

According to The Centers for Medicare and Medicaid Services (CMS), “the Recovery Act amended the Medicaid statute to provide 100 percent federal financial participation (FFP) for state expenditures for provider incentive payments to encourage Medicaid health care providers to adopt, implement, and operate certified EHR technology.  It also established a 90 percent FFP match for state expenses for administration of the incentive payments and for promoting EHR adoption.”[1]  For more information about the Medicaid EHR incentive program and its proposed requirements, refer to this CMS fact sheet.

Iowa was the first state to gain approval of its implementation plan for the EHR incentive program.  As of now, the other states that will also receive a 90 percent FFP match for administrative planning activities are:  Alaska, California, Georgia, Idaho, Kentucky, Montana, New York, Pennsylvania, South Carolina, Tennessee, Texas, and Wisconsin.  (Links to CMS press releases about each state’s federal match are provided.)  Also included is the U.S. Virgin Islands.