The Centers for Medicare and Medicaid Services is preparing to pay $5 billion to modernize the information technology that support the Medicaid management information systems of most states.

CMS, which funds 90 percent of MMIS systems now in use, is funding development of new systems to replace current legacy systems that are typically decades old and have historically been very expensive to operate. In addition, existing systems don’t adequately support accountable care and population health management, says Steve Larson, executive vice president at Optum Government Solutions, the lead vendor.

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