United States

Extension to OMB Circular A-87 Cost Allocation Exception Deadline Provides States with More Opportunities to Enhance HHS Eligibility Systems

Dec 09, 2014
From the Government Institute

The Centers for Medicare & Medicaid Services (CMS) has indicated its intention to make permanent for states the ability to leverage the enhanced funding provided for modernizing Medicaid eligibility and enrollment systems.

CMS also announced a three-year extension of the Office of Management and Budget (OMB) Circular A-87 Cost Allocation Exception (Exception), waiving the requirement to allocate the costs of developing shared eligibility services among health and human services programs through December 2018, rather than the original deadline of December 2015.

These two actions present additional opportunities for states already modernizing their service delivery and supporting systems, as well as for states that are in the planning stages or have not yet begun to evaluate the potential value of making use of the Exception and enhanced funding to deploy information technology components shared by Medicaid.

With the added time, states can consider expanding the scope of projects already underway. As for states still planning their approach, the extension can allow officials to develop a more comprehensive and far-reaching vision for their agencies.

This Issue Brief discusses key considerations for states as they seek to avail themselves of these opportunities.