States will receive $150 million over 2007 and 2008 to fund research and to transform their Medicaid systems to increase quality and efficiency of care, CMS has announced. Funds for the Medicaid grants were authorized by the Deficit Reduction Act of 2005 and are aimed at helping states develop innovative programs to streamline and modernize Medicaid to get more value out of the money they spend.
CMS is encouraging states to look at particular areas of program operations for improved efficiency, including methods for reducing patient error rates through electronic health records and e-prescribing; improving rates of collection from estates that owe money to Medicaid; increasing the use of generic drugs; developing care management programs to prevent complications and duplicative services; using performance-based payment programs to reward high-quality care; emphasizing prevention; and implementing medication risk management programs.
