HHS Announces Early Innovator Grants for Development of State Exchange Information Systems

Successful implementation of the Affordable Care Act relies heavily on technology to provide consumer-friendly information, to ensure that eligibility is streamlined, and to coordinate enrollment between Medicaid, CHIP and the Exchange. To support the development of these critical systems, HHS has announced “Early Innovator” grants to encourage and reward states for leading the way and building information system (IT) models that can be adopted and tailored by other states.

The HHS announcement and its intent to fund the development of systems that can be adopted by other states addresses one of the biggest concerns states have expressed about the health insurance exchanges: the complexity, cost and aggressive timeline of developing adequate IT systems. This approach ensures that states won’t have to reinvent the wheel 50 times over and that taxpayer dollars are used wisely.

Efficient, consumer-oriented IT systems are the backbone of health reform. The core functions of proposed systems must include but are not limited to: 1) eligibility, 2) enrollment, 3) premium tax credits administration and 4) cost-sharing assistance administration. Systems must also be interoperable and integrated with state Medicaid and CHIP programs and be able to interface with HHS and/or other federal agencies and data sources in order to verify and acquire data as needed. 

HHS chose not to set maximum award amounts in order to assure adequate funding to five states or consortia of states that “have ambitious yet achievable proposals that can yield IT models and best practices that will benefit all states.” Proposals are due December 22 and two-year grants will be awarded by February 15, 2011. The award announcements are scheduled at about the same time that all states will be eligible to apply for future funding to support ongoing exchange implementation.

For those who are tech-savvy, the request for proposals lays out specific technical requirements that are well above my pay grade. You can find more details at grants.gov, CFDA Number: 93.525.    

In an effort to get this up on the blog quickly, we have reviewed the highlights of the grant requirements and will provide a more thorough analysis next week.   

Tricia Brooks is a Research Professor at the Georgetown University McCourt School of Public Policy’s Center for Children and Families.

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