Iowa Medicaid to Receive $1.16M in Federal Matching Funds for EHR Incentives Program

The Centers for Medicare & Medicaid Services announced that Iowa's Medicaid program is the first to receive federal matching funds for planning activities necessary to implement the electronic health record incentive program established by the American Recovery and Reinvestment Act of 2009, according to a CMS news release.

Iowa will receive approximately $1.16 million in federal matching funds.

The funds are intended to increase EHR use for Medicaid patients, making it easier for the many providers who may be treating a Medicaid patient to coordinate care, according to the release.

The Recovery Act provides a 90 percent federal match for state planning activities to administer the incentive payments to Medicaid providers, to ensure their proper payments through audits and to participate in statewide efforts to promote interoperability and meaningful use of EHR technology statewide and, eventually, across the nation.

"While Iowa is the first state to receive approval of its plan for implementing the Recovery Act's EHR incentive program, a number of other states have submitted plans as well," Cindy Mann, director of the Center for Medicaid and State Operations at CMS, said in the release. "Meaningful and interoperable use of EHRs in Medicaid will increase healthcare efficiency, reduce medical errors and improve quality-outcomes and patient satisfaction within and across the states."

Iowa will use its federal funds for planning activities that include conducting a comprehensive analysis to determine the current status of HIT activities in the state. As part of that process, Iowa will gather information on issues such as existing barriers to its use of EHRs, provider eligibility for EHR incentive payments and the creation of a state Medicaid HIT Plan, which will define the state's vision for its long-term HIT use.

Iowa will also use funding for this planning phase to assess expectations of its incentive payment recipients and their need for personal health records. PHRs are confidential and easy-to-use electronic file or records used to manage and individual's health services information; however, PHRs differ from EHRs in that they are managed by the consumer.

Read the CMS release on Iowa's federal matching funds for EHR incentives.

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