​CMS To Invest $5+B/Yr in Open Source and Cloud-based IT Infrastructure

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CMS To Invest $5+ Billion a Year in Open Source and Cloud-based IT Infrastructure for Medicaid – August 18, 2016, By Roger A. Maduro, Open Health News

After more than 40 years of relying on monolithic mainframe platforms to administer its services, the Centers for Medicare & Medicaid Services (CMS) has embraced a new modular, open and agile approach to Medicaid health information technology for the Federal government and States. In many ways, this is the best of what open source advocates and technology innovators could have hoped for when it comes to open source policy from a government agency.

According to Andrew Slavitt, Acting Administrator of CMS, the agency will spend more than $5 billion a year to fund this transformation. In addition to funding from CMS, each individual State will invest a substantial amount of money, adding up to several billion dollars a year in total. The Federal law to support this went into effect at the beginning of this year, and the agency is in the process of soliciting feedback from the industry on the strategy and framework of the solution as well as calling for disruptive innovations that it can leverage to transform the way care is delivered.

Background: CMS is the US Government’s medical insurance program. It pays over $500 billion a year in medical claims through Medicaid…

G2X TAKE: Much of this will be well worn territory to those firms who pound the pavement at CMS every day, but this succinct article from OpenHealth News does a good job describing the opportunity that lies ahead at both the Federal and State levels.

Looking to get in on this action? From Maximus and Cogoasante to CNSI, Telligen and Optum, finding firms with expertise and contacts across the state and federal Market will be key as contract vehicles remain a primary challenge for new entrants.


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