RD197 - Semi-Annual Progress Report on Eligibility Systems Modernization - July 2016

Executive Summary:
In December 2012, the Department of Social Services (DSS) entered into a contract with Deloitte Consulting, LLP to modernize the existing automated eligibility systems for all public assistance programs, beginning with the Medicaid program. DSS has partnered with the Department of Medical Assistance Services (DMAS) to accommodate changes in technology to support implementation of new Medicaid requirements and eligibility determination.

The scope of the contract includes implementation of the changes to Medicaid to meet federal Patient Protection and Affordable Care Act requirements, replace the current legacy eligibility system Application Benefit Delivery Automation Project (ADAPT), automate Medicaid categories not currently in ADAPT, implement a statewide document management and imaging system, and convert current Medicaid-related cases from ADAPT and the DMAS system into the new case management system, the Virginia Case Management System (VaCMS). There were three projects for eligibility modernization: MAGI (Modified Adjusted Gross Income); Program Migration; and Conversion.

The MAGI project was implemented on October 1, 2013. To date, MAGI Medicaid is fully implemented, certified by the Center for Medicare and Medicaid Services (CMS), and VaCMS has been used to process over 900,000 applications since its inception. The experience in the Commonwealth with the new system and the volume of applications in the first year of MAGI implementation challenged the ability of local department of social services staff to process applications and process renewals in a timely manner.

Work on the eligibility modernization projects continues. Project teams from DSS and DMAS identified a number of system changes to enhance service delivery. In addition, CMS required changes to the online portal for Medicaid to make it more Medicaid-centric and dynamic in function. As a result of implementing these changes, the implementation of the final Medicaid categories and requirements were completed in September 2015.

DSS split Program Migration Project implementation into two phases, with the first phase focused on statewide implementation of the balance of the Medicaid program, central printing, and document management and imaging. This phase of the project was completed September 2015. DSS will convert the remaining Medicaid program cases from the ADAPT legacy system to VaCMS in the summer of 2016.

The federal Food and Nutrition Service (FNS) requires SNAP technology changes to be implemented through a pilot process. DSS has worked closely with FNS to complete all planning and testing requirements for approval to pilot SNAP in 10 localities. On April 14, 2016, DSS recommended and FNS concurred that the SNAP pilot would begin April 25, 2016. The goal is to perform the pilot functions in the summer of 2016, with all public assistance programs implemented statewide by December 2016.

The majority of the contract costs to date are eligible for 90/10 federal funding. Total expenditures through March 2016 include payments to Deloitte Consulting, LLP, salaries for the DSS staff, and procurement of hardware/software tools for the three projects. Total expenditures for the three projects are $120,912,519 ($101,966,029 NGF and $18,946,490 GF). Payments of $86,511,454 have been made to Deloitte Consulting, LLP to gather system requirements, design and develop system functionality, deployment functionality and train local departments of social services' workers. Approximately $15.6 million has been spent on hardware and software products, with the balance of expenditures being for costs such as DSS staff, training and travel for local department of social services employees who participate on the project teams.