1 ISD2 Replacement Project (ISD2R) PCC Update 09/22/10

2 ISD2R Agenda Objective Status Update Funding and Budgets Going Forward

3 Objective Replace the Income Support Division (ISD), Integration Services Delivery (ISD2) System which manages benefits for over 800,000 clients who receive Food Stamps (SNAP), Energy Assistance, Medicaid, and Cash Assistance. Meet Requirements of Health Care Reform Act of 2010 Partner with the following Federal Agencies:  Food and Nutrition Services (FNS)  Centers for Medicare and Medicaid (CMS)  Administration of Children and Families (ACF)

4 Update Planning Phase Approval Request  Requesting $ 864,286 for the PMO and IV&V PMO Contracts.  Requesting $ 146,807 for the PMO and IV&V PMO Contracts.  HSD will use up to $100, of the CHIPRA to support maintenance and operations changes to Phase One of Yes-NM, Am I Eligible application. CHIPRA is a grant to help offset the cost of Medicaid enrollment costs Am I Eligible is the web application that allows potential clients to determine what Medicaid services they are eligible for. Note: Pending approval in the 2010 P-APDU  The use of $50, from the HSD-ITD base budget for the Procurement Specialist contract. Planning Phase is scheduled to finish around 10/01/2011

5 Update Activities  PMO RFP – At BAFO  Procurement Specialist - started 9/7/10 Integrator RFP  Funding & Budgets ISD2R Purchasing Request Form– To allow for the correcting funding stream to be selected at the onset of the purchasing process. Reconciliation of the expenses between LFC and ITD-HSD for ISD2R continues.  Planning-Advanced Planning Document Submitted to our federal partners for review  FNS approved the plan.  CMS requested some clarifying information be added.  PMO IV&V – SOW and Deliverables draft has started.

6 Update July 2010 PCC Questions  RFP options for the most appropriate place for adding HCR.  Integrated approach to schedule and budget for: Health Care Reform (HCR) / Health Insurance Exchange (HIE) ISD2 Replacement System (ISD2R) Medicare and Medicaid Eligibility System (MMIS)  Show milestones for HCR  Schedule showing modular priorities for implementing ISD2R Different Programs or Sections of Programs What do we get if we start running out of money?

7 Update RFP options for the most appropriate place for adding HCR. Presented to Secretary Falls on 8/6/2010  Option 1: ISD2R system with Medicaid done first Selected Will not risk MMIS deliverables of 5010, ICD10 and takeover of the system. Will not create another system for HSD to maintain and fund for business and technical staff.  Option 2: Include Medicaid in the MMIS RFP Not selected MMIS is to continue towards their targeted deliveries. The process is not to be interrupted to include HCR / HCE.  Option 3: Standalone Medicaid eligibility system Not selected Adding another system into the current systems to support in not advantageous. There is additional cost to house the system; fund maintenance and operations activities; fund upgrades; and train business staff to use the system. Due to the budget restrictions there is no funding for additional staff to support a new system in the field. The staff will have to enter information into the existing system as well as the new system.

8 Update Integrated Approach to Schedule and Budget.  Information has been gathered into a spreadsheet that shows the estimated budget for HCR/HIE, ISD2R, and MMIS.  SFY11 Sample ISD2RHealth Care ReformMMIS SFY11- SFY14Milestone55,978,219Milestone6,729,860Milestone77,525,751 total for month SFY11-Q17/1/ , ,778,3781,797,865 8/1/ ,778,378 9/1/ ,778,378 SFY11-Q210/1/2010PMO Award P-APDU Approved 0PM/BA16,66701,778,3781,795,045 11/1/ ,857016,66701,778,3781,872,902 12/1/2010PMO Contract PMO IV&V Contract 87,857016,66701,778,3781,882,902 SFY11-Q31/1/2011Administrative Change Legislative Session 87,857016,66701,778,3781,882,902 2/1/2011Integrator RFP Release Legislative Session 111,427016,667Contract Start3,485,6203,613,714 3/1/ ,857016,66703,445,0453,549,569 SFY11-Q44/1/ ,857016,66703,445,0453,549,569 5/1/ ,607016,66703,445,0453,553,319 6/1/2011I-APD Submission87,857016,66703,445,0453,549,569

9 Update Show Milestones for HCR H EALTH C ARE R EFORM M ILESTONES Major Project Deliverable and Performance MeasureBudgetDue DateProject Phase Health Care Reform Req GatheringFri 9/2/11Planning Health Insurance Exchange Req GatheringFri 9/2/11Planning Health Care Reform Requirement?Fri 9/30/11Implementation Health Insurance Exchange Requirements?Fri 9/30/11Implementation Health Care Reform Compliance ReviewTue 1/1/13Implementation Health Care Reform Implementation DateWed 1/1/14Implementation

10 Update Schedule showing modular priorities for implementing ISD2R  Will work with PMO  Modular release is complicated by items that span the modules: Data conversion Deployment Notices Interfaces Training  Federal Funds (CMS &FNS) Feds will only fund the modules that we implement  Program Modular Medicaid SNAP TANF/WORKS State Funded Cash Assistance LIHEAP Claims

11 Funding & Budgets The remaining federal funds for planning are: HSD requested in the Updated-Advanced Planning Document Update a budget of $1,368,428. Fed-Planning Fed-Budget$ 2,000,000 NM-Expenses$ 528,668 NM-Remaining$ 1,471,332 Expenditure CategoryTotal State Personnel $ 103,974 Contract Personnel $1,117,647 Hardware and Software $ 146,807 Total $ 1,368,428

12 Funding & Budgets Of the $1,368, Federal Planning Budget, HSD is requesting $1,136,807 for the Planning Phase to continue. HSD will use $50, of the ITD base budget for the Procurement Specialist contract. HSD will use up to $75, of the ITD base budget to support maintenance and operations changes to Phase One of Yes-NM, Am I Eligible. Expenditure CategoryTotalPurpose State Personnel $ -n/a Contract Personnel $ 990,000  PMO Contract  IV&V PMO Contract Hardware and Software $ 146,807  Licensing  Health Care Reform Conferencing / Training Total $ 1,136,807

13 Funding & Budgets Reconciliation SFY05-SFY10: Laws of 2005, Section 7, Item 16 1,000,000 (expired 6/30/2010) exp 2007 (16,900) exp 2008 (33,900) exp 2009 (249,500) exp 2010* (329,139) (629,439) Remainder 370,561 Less z80726 expenses for SFY10* (280,664) GF 43% 89,898 FF match 57% 119,167 GF and FF 209,064 * Estimated balance for SFY10.

14 Going Forward Actions :  Project Management Office (PMO) Best and Final Offers will be made by 10/17/2010 Target date for PMO to start is mid November Integrator RFP to be reviews by PMO  Waiting for response on updated Planning-APDU from CMS FNS Approved  Procurement Specialist Contract Procurement specialist started 9/7/10 Integrator RFP writing is underway  Issue open RFP for Replacement System including Integration  PMO IV&V Contract process will start.

15 Questions