Department of Information Technology - Workgroup on the Medicaid Management Information System Mainframe System Replacement

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
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*hb1167*

HOUSE BILL 1167
J1, J5 6lr3436
CF SB 963
By: Chair, Health Committee and Delegate Cullison and Delegates Cullison,
Guzzone, Hill, Hutchinson, S. Johnson, Kaufman, Kipke, Lopez, Martinez,
Rosenberg, Taveras, and White Holland
Introduced and read first time: February 11, 2026
Assigned to: Health
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 21, 2026

CHAPTER ______

AN ACT concerning 1

Maryland Department of Health – Department of Information Technology – 2
Workgroup on the Medicaid Management Information System – System 3
Mainframe System Replacement 4

FOR the purpose of requiring the Maryland Department of Health to replace the State 5
Medicaid Management Information System mainframe with a modular system 6
requiring the Department of Information Technology to convene a workgroup on the 7
Medicaid Management Information System mainframe system replacement ; and 8
generally relating to the replacement of the Medicaid Management Information 9
System mainframe system. 10

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That: 12

(a) The Department of Information Technology shall convene a workgroup on the 13
Medicaid Management Information System mainframe system replacement. 14

(b) The workgroup shall consist of: 15

(1) at least one representative from the Maryland Department of Health; 16

(2) at least one representative from the Department of Human Services; 17

2 HOUSE BILL 1167

(3) at least one representative from the Maryland Health Benefit 1
Exchange; 2

(4) at least one representative from the Office of the Comptroller; and 3

(5) two individuals with experience in health insurance policy, of whom: 4

(i) one shall be designated by the President of the Senate; and 5

(ii) one shall be designated by the Speaker of the House. 6

(c) Subject to paragraphs (2) and (3) of this subsection, the workgroup shall assist 7
the Maryland Department of Health in procuring and transitioning to a r eplacement 8
mainframe system for the Medicaid Management Information System on or before July 1, 9
2029, that: 10

(1) promotes payment accuracy, system security and performance, 11
responsiveness, and modernizes the existing system’s outdated technological 12
infrastructure; and 13

(2) supports, at minimum, the functionalities of the existing system, 14
including provider enrollment, medical, dental, and pharmacy claims processing, 15
beneficiary inquiries, data reporting, and audit functions in accordance with the C enters 16
for Medicare and Medicaid Services and other applicable federal requirements, including 17
42 C.F.R. Part 322, Subpart C. 18

(d) The workgroup may consult with experts as necessary in conducting its duties. 19

(e) (1) On or before September 1, 2026, and every 3 months thereafter through 20
September 1, 2029, the workgroup shall provide to the Senate Budget and Taxation 21
Committee, the Senate Finance Committee, the House Appropriations Committee, the 22
House Health Committee, and the Joint Audit and Evaluation C ommittee, in accordance 23
with § 2 –1257 of the State Government Article, a report on the progress made toward 24
procuring a Medicaid Management Information System mainframe system replacement. 25

(2) In addition to the reports required under paragraph (1) of t his 26
subsection, on or before January 1, 2027, 2028, and 2029, the workgroup shall submit a 27
report to the Senate Budget and Taxation Committee, the Senate Finance Committee, the 28
House Appropriations Committee, the House Health Committee, and the Joint Audit and 29
Evaluation Committee, in accordance with § 2 –1257 of the State Government Article, on 30
the activities of the workgroup, including a timeline for meeting the implementation 31
deadline for the replacement. 32

(a) In this section, “Department” means the Maryland Department of Health. 33

(b) (1) The Department shall procure a replacement system for the State’s 34
Medicaid Management Information System to promote payment accuracy, system security 35
HOUSE BILL 1167 3

and performance, responsiveness, and to modernize the current system’ s outdated 1
technological infrastructure, subject to approval by the Centers for Medicare and Medicaid 2
Services as required. 3

(2) The replacement system shall support, at a minimum, the 4
functionalities of the existing system, including provider enrollment , medical, dental and 5
pharmacy claims processing, beneficiary inquiries, data reporting, and audit functions in 6
accordance with the Centers for Medicare and Medicaid Services and other applicable 7
federal requirements, including 42 C.F.R. Part 433, Subpart C. 8

(c) (1) On or before January 1, 2027, the Department shall integrate the 9
replacement system with the Medicaid Enterprise System. 10

(2) On or before January 1, 2028, the Department shall: 11

(i) transition all Department applications from the Annapolis Data 12
Center to the replacement system; and 13

(ii) decommission the legacy Medicaid Management Information 14
System on completion of the transition. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
June 1, 2026. It shall remain effective for 4 years and 1 month and, at the end of June 30, 17
2030, this Act, with no further action required by the General Assembly, shall be abrogated 18
and of no further force and effect. 19

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.