Medicaid Transformation Grants (93.793)

Program

93.793 Medicaid Transformation Grants

Federal Agency

Agency: Department of Health and Human Services
Office: Centers for Medicare and Medicaid Services

Authorization

Deficit Reduction Act of 2005, Public Law 109-171, enacted February 8, 2006, Section 6081, Medicaid Transformation Grants.

Program Number

93.793

Last Known Status

Active

Objectives

To provide Federal payments to States for the adoption of innovative methods to improve the effectiveness and efficiency in providing Medical Assistance.

Types of Assistance

PROJECT GRANTS

Uses and Use Restrictions

Funds from the program may be used to fund the following examples of innovative methods to improve the effectiveness and efficiency in providing Medical Assistance and are not limited to: (1) methods for reducing patient error rates through the implementation and use of electronic health record, electronic clinical decision support tool, or e-prescribing programs, (2) methods for improving rates of collection from estates of amounts owed under Medicaid, (3) methods to reduce waste, fraud and abuse under Medicaid, such as reducing improper payment rates as measured by annual error rate measurement (PERM), (4) implementation of medication risk management program as part of a drug use review program under section 1927(g), (5) methods for reducing, in clinically appropriate ways Medicaid expenditures for covered outpatient drugs, particularly in the categories of greatest drug utilization, by increasing the utilization of generic drugs through the use of education programs and other incentives to promote greater use of generic drugs, and (6) methods of improving access to primary and specialty physician care for the uninsured using integrated university-based hospital and clinic systems. RESTRICTIONS -- States may not use funds as the State's share of the Medicaid program costs or as supplemental Disproportionate Share Hospital (DSH) payments.

Eligibility Requirements

Applicant Eligibility

Grant applicants are limited to the 51 State Medicaid Agencies and the Medicaid Agencies in the Federal Territories.

Beneficiary Eligibility

State Medicaid Agencies and the Medicaid Agencies in the Federal Territories.

Credentials/Documentation

Federal funds will be directed to the State Medicaid Agency with the grant award amount identified in the award approval letter. Permissible administrative costs will be determined in accordance with Office of Management and Budget (OMB), Circular No. 87, "Cost Principals for States and Local Governments.". OMB Circular No. A-87 applies to this program.

Application and Award Process

Preapplication Coordination

Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under OMB Circular No. A-110. A State may submit only one application. More than one program concept proposal and budget may be included in the application. Applications must be submitted electronically to CMS via E-mail: Matransgrant@cms.hhs.gov.

Award Procedure

CMS will make a decision for each application received. Each applicant will receive written notification of CMS' decision. Applicants approved for a grant award must submit a letter of acceptance to CMS within 30 days of the date of the award, agreeing to the terms and conditions of the award letter.

Deadlines

Oct 02, 2009 All applications are due to CMS by October 2, 2009.

Range of Approval/Disapproval Time

From 60 to 90 days. 60 to 90 days.

Appeals

None.

Renewals

None.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.
This program has no matching requirements.
This program does not have MOE requirements.

Length and Time Phasing of Assistance

Project Period: Under the legislation, a total of $150,000,000 has been made available for the Medicaid Transformation grants. $75,000,000 is available for obligation in FY 2007 and another $75,000,000 is available for obligation in FY 2008. All $150,000,000 will be awarded in a single grant solicitation at the beginning of FY 2007 that will cover both years of the program. Funds for FY 2008 activities/obligations will not be available until FY 2008. Budget Period: FY 2007 and FY 2008. Method of awarding/releasing assistance: lump sum.

Post Assistance Requirements

Reports

States will be required to submit an annual report to CMS related to the programs supported by this award and the report shall include at a minimum: (1) the specific uses of the funds (2) an assessment of quality improvements and clinical outcomes under this program and (3) estimates of cost savings resulting from this program. In addition, States will be required to submit financial reports as required by CMS. No cash reports are required. States will be required to submit an annual report to CMS related to the programs supported by this award and the report shall include at a minimum: (1) the specific uses of the funds (2) an assessment of quality improvements and clinical outcomes under this program and (3) estimates of cost savings resulting from this program. In addition, States will be required to submit financial reports as required by CMS. States will be required to submit an annual report to CMS related to the programs supported by this award and the report shall include at a minimum: (1) the specific uses of the funds (2) an assessment of quality improvements and clinical outcomes under this program and (3) estimates of cost savings resulting from this program. In addition, States will be required to submit financial reports as required by CMS. No performance monitoring is required.

Audits

In accordance with the provisions of OMB Circular No. A-133 (Revised, June 27, 2003), "Audits of States, Local Governments, and Non-Profit Organizations," nonfederal entities that expend financial assistance of $500,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $500,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133.

Records

Financial records, supporting documents and progress/annual reports and all other records pertinent to this program shall be retained 3 years.

Program Accomplishments

Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available Fiscal Year 2011: No Current Data Available

Financial Information

Account Identification

75-0516-0-1-551.

Obligations

(Formula Grants (Apportionments)) FY 08 $75,000,000; FY 09 est $0; FY 10 est $0 - There were no obligations or appropriations for FY09 or FY10 but that the program should remain in the system.

Range and Average of Financial Assistance

Grant funds will be allocated based on the number of States that apply and meet the grant criteria.

Regulations, Guidelines and Literature

CMS will provide application guidance in the form of a State Medicaid Director letter. The letter may be located at www.cms.hhs.gov/MedicaidTransGrant/.

Related Programs

Not Applicable.

Information Contacts

Regional or Local Office

None.

Headquarters Office

Tonya Moore 7500 Security Boulevard, Baltimore, Maryland 21244 Email: Tonya.Moore@cms.hhs.gov Phone: 4107860019

Web Site Address

www.cms.hhs.gov/MedicaidTransGrant/

Examples of Funded Projects

Not Applicable.

Criteria for Selecting Proposals

Each application will be reviewed by a team of CMS staff. The applicant selection criteria will consist of the following but will not be limited to only these factors: the project abstract, project narrative and budget.