Federal Funding for Medicaid Health Information Technology Activities

Authors: Department of Health and Human Services
Publication Year: 2010
Last Updated: 2016-04-06 13:04:55
Journal: Department of Health and Human Services
Keywords: HIT, health information technology, hitech, IT, EHR, electronic health records, 100% FFP, ARRA, american recovery and reinvestment act

Short Abstract:

The item concerns the federal matching funds made available to states by the American Recovery and Reinvestment Act of 2009 (ARRA) to incentivize the adoption of meaningful use-certified EHR technology.  Final regulations have been promulgated by CMS, and this letter will provide further guidance on these utilizing these matching funds.


This letter provides guidance to State Medicaid agencies regarding implementation of section 4201 of the American Recovery and Reinvestment Act of 2009 (the Recovery Act), Pub. L. 111-5, and our recently published regulations at 42 CFR Part 495, Subpart D. Section 4201, as well as our final regulations, will allow the payment of incentives to eligible professionals (EPs) and eligible hospitals to promote the adoption and meaningful use of certified electronic health record (EHR) technology. The Recovery Act provides 100 percent Federal financial participation (FFP) to States for incentive payments to eligible Medicaid providers to adopt, implement, upgrade, and meaningfully use certified EHR technology, and 90 percent FFP for State administrative expenses related to the program.

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