Agency: Health

Line Item: Medicaid Management Information System Replacement

Function

The current system processing and paying medical claims, the Medicaid Management Information System, started in 1983. A system that began operations in 1975 in Iowa is the basis for the current system. The system uses a programming language known as COBOL. New federal requirements continue to add to the system design requirements and add details to the information required for medical billing and reporting. As part of its FY 2010 Appropriations Request, the Department of Health estimated the total cost to replace the Medicaid Management Information System at $85 million ($11 million General Fund) over a three-year period. One option is to replace the system replacement incrementally by function.

Intent Language

The Legislature intends that the Department of Health report quarterly to the Office of the Legislative Fiscal Analyst on the status of replacing the Medicaid Management Information System replacement beginning September 30, 2012. The reports should include, where applicable, the responses to any requests for proposals.

Under Section 63J-1-603 of the Utah Code the Legislature intends that appropriations provided for Medicaid Management Information System Replacement in Item 79 of Chapter 379 Laws of Utah 2011 not lapse at the close of Fiscal Year 2012. The use of any nonlapsing funds is limited to $5,300,000 for the redesign and replacement of the Medicaid Management Information System.

Funding Detail

For analysis of current budget requests and discussion of issues related to this budget click here.