In July 2006 the Centers for Medicare and Medicaid (CMS) announced the availability of grant funds for "...the adoption of innovative methods to improve effectiveness and efficiency in providing medical assistance..." also known as the Medicaid Transformation Grants (Public Law 109-171, Section 6081).
These funds were to provide "new opportunities for states to work with the Federal Government to build on the effective reforms to slow spending growth while providing needed coverage, and doing more to help people get the kind of care they prefer. Through the use of the Transformation Grants funds, states had an opportunity to implement processes and/or programs that are more aligned with today's Medicaid populations and the health care environment".
Overall Medicaid Transformation Grant Appropriation: $150,000,000 for 2 Fiscal Years
Total for FY07: $75,000,000
Total for FY08: $75,000,000
A total of 34 Grant Applications/Proposals were awarded funding for this appropriation. Michigan received the second highest total, $9.1 million, for two Project Proposals:
One Source Credentialing for $5.2 million
Vital Records for $3.9 million