CMS Issues Guidance to State Medicaid Directors on HIT Incentive Payments

by Rebecca Farley on August 26, 2010

The Centers for Medicare and Medicaid Services (CMS) has issued a State Medicaid Directors Letter providing guidance on how states may receive federal matching funds for their role in administering health information technology incentive payments to eligible providers in the Medicaid program.

The HITECH Act, which was included in the American Recovery and Reinvestment Act of 2009, provides states a 90% federal match rate for their activities related to overseeing and administering the HIT incentive payments (the incentive payments themselves are 100% federally funded). To receive the 90% match, states must meet certain requirements in the administration and oversight of Medicaid incentive payments. They must also work to encourage the adoption of certified electronic health records (EHR) and promote the electronic exchange of health information.

The SMDL includes a list of specific administrative and oversight activities that are eligible for the 90% match and provides criteria for initiatives encouraging the adoption of EHRs.
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