Medicaid Transformation Grants


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

General information about this opportunity
Last Known Status
Deleted 03/03/2014 (Archived.)
Program Number
Federal Agency/Office
Agency: Department of Health and Human Services
Office: Centers for Medicare and Medicaid Services
Type(s) of Assistance Offered
Program Accomplishments
Not Applicable.
Deficit Reduction Act of 2005, Public Law 109-171, enacted February 8, 2006, Section 6081, Medicaid Transformation Grants.
Who is eligible to apply/benefit from this assistance?
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.
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.
What is the process for applying and being award this assistance?
Pre-Application Procedure
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:
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.
Not Applicable.
Approval/Disapproval Decision Time
Not Applicable.
How are proposals selected?
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.
How may assistance be used?
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.
What are the requirements after being awarded this opportunity?
States are 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 are required to submit financial reports as required by CMS. No cash reports are required. Progress Reports: see above. Expenditure Reports: see above. No performance monitoring is required.
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.
Financial records, supporting documents and progress/annual reports and all other records pertinent to this program shall be retained 3 years.
Other 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
There were no new obligations or appropriations for FY10 or FY11 but the program should remain in the system due to continued outlays. Method of awarding/releasing assistance: lump sum.
Who do I contact about this opportunity?
Regional or Local Office
Headquarters Office
Barbara Dailey, 7500 Security Boulevard, Baltimore, Maryland 21244 Email: Phone: (410) 786-9012.
Website Address
Financial Information
Account Identification
(Formula Grants (Apportionments)) FY 11 $0; FY 12 est $0; and FY 13 est $0 -
Range and Average of Financial Assistance
Grant funds were allocated based on the number of States that applied and met the grant criteria.
Regulations, Guidelines and Literature
CMS provided application guidance in the form of a State Medicaid Director letter. The letter is located at
Examples of Funded Projects
Not Applicable.


Federal Grants Resources