CMS to Release HITECH Medicaid Funding

The Centers for Medicare and Medicaid Services is now releasing healthcare IT funding from the HITECH Act/ARRA to state Medicaid programs.  According to a CMS letter mailed Wednesday to state Medicaid directors, HITECH enables the government to pay a 100% federal financial participation ("FFP") match to states that help Medicaid providers adopt, implement or upgrade certified electronic health record technology to demonstrate meaningful use.

CMS will also pay a 90% FFP match to cover a state's administrative costs for running a HIT Medicaid incentive program. States may now request the 90% FFP match for administrative planning activities, according to the letter.  CMS advised states who plan to apply for a FFP match to plan how they will audit their healthcare IT incentive payment programs for errors.