This post was also written by Jacqueline B. Penrod.

CMS published a proposed rule on November 8, 2010 that would provide additional federal funding for certain Medicaid eligibility determination and enrollment activities under the ACA and update regulations to reflect other Medicaid eligibility and business process changes. Specifically, Medicaid eligibility systems potentially will be eligible for an enhanced 90% federal matching rate for design and development of new systems and a 75% federal matching rate for maintenance and operations (compared to the current 50% match). To qualify for enhanced funding, states must meet a set of performance standards and conditions, including seamless coordination with Health Insurance Exchanges to be established under the ACA. The 90% rate will be available until December 31, 2015, and the 75% match will be available beyond that date if certain conditions are met. CMS will accepts comments on the proposed rule until January 7, 2011.  CMS and the Office of Consumer Information and Insurance Oversight (OCIIO) also issued separate guidance November 3, 2010 designed to assist states “as they design, develop, implement, and operate technology and systems projects” relating to establishing and operating Exchanges and Medicaid coverage expansions. It also seeks to help states to achieve interoperability with federal entities so that state and federal entities can work together to provide health insurance coverage through the Exchange, Medicaid or CHIP programs.