WASHINGTON – The Centers for Medicare and Medicaid Services has announced that Medicaid programs in Tennessee and Pennsylvania will receive federal matching funds for state planning activities to implement the electronic health record incentive program established by the American Recovery and Reinvestment Act of 2009.

Tennessee will receive approximately $2.7 million and Pennsylvania will receive $1.42 million. Iowa was the first state to receive the matching funds; California, Georgia, Idaho, Montana, New York, Texas and the U.S. Virgin Islands were the next seven states and territories to receive the funds.

EHRs are expected to improve the quality of healthcare for patients in Tennessee and Pennsylvania and make it easier for providers who are treating Medicaid patients to coordinate care.

The ARRA provides a 90 percent federal match for state planning activities to administer the incentive payments to Medicaid providers, ensure proper payments through audits and participate in statewide efforts to promote interoperability and meaningful use of EHR technology.

“We congratulate Tennessee and Pennsylvania for qualifying for these federal matching funds to assist their plans for implementing the recovery act’s EHR incentive program,” said Cindy Mann, director of the CMS' Center for Medicaid and State Operations.

Meaningful and interoperable use of EHRs in Medicaid will increase healthcare efficiency, reduce medical errors and improve quality-outcomes and patient satisfaction, she said.

The two states will use the funds for planning activities that include a comprehensive analysis to determine the  status of health IT activities in the state. Information will be gathered on issues such as existing barriers to the use of EHRs, provider eligibility for EHR incentive payments and the creation of state Medicaid health IT plans.

Federal matching funds for the first eight states were awarded as follows:

• California received approximately $2.48 million
• Georgia received approximately $3.17 million
• Idaho received approximately $142,000
• Iowa received approximately $1.6 million
• Montana received approximately $239,000
• New York received approximately $5.91 million
• Texas received approximately $3.86 million
• The U.S.Virgin Islands received approximately $232,000