Group: Social Services - Department of Health

Agency: Health

Line Item: Medicaid Management Information System Replacement

Function

The current system used to process and pay medical claims, the Medicaid Management Information System, began in 1983 and is based upon a system that began operations in 1975 in Iowa. The system uses a programming language known as COBALT. New federal requirements beginning in 2012 and 2013 will add details to the information required for medical billing. 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. The Department has indicated that the system replacement could be done in pieces 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, 2010. The reports should include, where applicable, the responses to any requests for proposals.

The Legislature intends that the Department of Health report to the Office of the Legislative Fiscal Analyst by July 1, 2010 its plans for a Medicaid Management Information System replacement. The presentation should include the full array of options for which parts of claims processing are performed by State vs contracted workers.

Funding Detail

Program: Medicaid Management Information System Replacement

Funding Detail

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