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State & Local Projects

Medicaid Electronic Health Record Incentives

Section: Division B, Title IV | Agency: Agency for Health Care Administration

States may reimburse eligible Medicaid providers for the cost of qualified electronic health record (EHR) purchases, implementation and certain operational costs. Hospitals payments are determined by a formula that contains a one year, two year and overall upper limit. For non- hospitals: $21,250: maximum net allowable costs for purchase and initial implementation. $8,500: maximum net allowable costs for subsequent year EHR related expenses. $63,750: aggregate maximum net allowable costs. Reimbursement is limited to six years and cannot be provided after 2021. Providers would be responsible for any technology related expense not referenced.

When funds are expected to be available: 2011

How long are funds available?: 2021. Reimbursement is limited to six years and cannot be provided after 2021.

Conditions or prerequisites for accessing funds (include matching or maintenance of effort (MOE) requirements): CMS will require states to submit a “scan” of State HIT activities.  States will be required to submit a planning document describing the “as is” and “what will be” state HIT environment including identification of eligible providers, requirements for meaningful use of electronic health records and program monitoring.

Federal agency provides 85 percent of program funding for Medicaid providers’ purchase of certified EHR, including training and maintenance.