Twenty-seven states will look for new ways to improve the efficiency, economy and quality of their Medicaid programs as Health and Human Services Secretary Michael Leavitt has awarded the first $103 million in Medicaid "transformation grants."
The Deficit Reduction Act of 2005 allocated a total of $150 million in such grants to be awarded during 2007 and 2008. States can use the funds to design improvement programs for the care of low-income and disabled residents based around the permissible uses listed in the DRA.
Leavitt said the grants give states the flexibility they need to deliver high quality care in an efficient and economical way. "With these grants states can streamline and modernize their systems, stabilize the exponential growth of the program and protect it into the future," he said.
Many states have planned implementations of information technology such as electronic health records, health information networks and e-prescribing systems to improve quality and reduce patient errors.
West Virginia received the largest sum ($13.6 million) for the implementation of five "Healthier Medicaid Members" programs. Arizona received the largest single grant ($11.7 million) for the development of a health information exchange utility project called the "Arizona Health Care Cost Containment System."
Gov. Janet Napolitano (D-Ariz.) said in a press release, "It's gratifying to be recognized on the national level, and even more rewarding to know that the innovative work developed here will be made available to other states."
The third highest sum ($7.6 million) was awarded to Alabama. Gov. Bob Riley (R-Ala.) said on his Web site that the state would “create a statewide electronic health information system that links Medicaid, state health agencies, providers and private payers while establishing a comprehensive, quality improvement model for the Alabama Medicaid program.”
Other uses of the grants include:
• Automated tracking of fraud, abuse, and improper payment
• Electronic citizenship verification
• Improvement of Medicaid estate recovery processes
• Increased credentialing services
• Expansion of generic drugs
• Improvement of access to primary and specialty physician care for the uninsured
• Implementation of a medication risk management program
The remaining states will receive a total of $47 million in Medicaid transformation grants later this year.