B. Adjustment to State Cost Estimates

Official source

To estimate the financial burden on States, it was important to consider the Federal government's contribution to the cost of administering the Medicaid program. For Medicaid, all States receive a 50 percent Federal matching rate for most administration expenditures. States also receive higher Federal Financial Participation (FFP) rates of 90 percent for the design, development, and implementation and 75 percent for the operations and maintenance of Medicaid IT systems. After taking into account the Federal contribution to the costs of administering the Medicaid programs for purposes of estimating State burden for the collection of information, we are estimating that States will contribute 25 percent of the costs for Medicaid Information Technology (IT) system updates and 50 percent of all other costs, even though the burden will likely be smaller.

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B. Adjustment to State Cost Estimates

Official source

To estimate the financial burden on States, it was important to consider the Federal government's contribution to the cost of administering the Medicaid program. For Medicaid, all States receive a 50 percent Federal matching rate for most administration expenditures. States also receive higher Federal Financial Participation (FFP) rates of 90 percent for the design, development, and implementation and 75 percent for the operations and maintenance of Medicaid IT systems. After taking into account the Federal contribution to the costs of administering the Medicaid programs for purposes of estimating State burden for the collection of information, we are estimating that States will contribute 25 percent of the costs for Medicaid Information Technology (IT) system updates and 50 percent of all other costs, even though the burden will likely be smaller.