Medicaid tech companies pledge $600 million to help states update systems

Ten Medicaid technology organizations have pledged more than $600 million in free or discounted services to assist states in implementing new Medicaid community engagement requirements while updating eligibility and enrollment systems, according to a recent announcement by CMS.

These companies participating in the pledge include Accenture, Acentra Health, Conduent, GDIT, Deloitte, Gainwell, Maximus, Curam by Merative, Optum and RedMane.

CMS said the voluntary commitments are intended to help states prepare for and carry out community engagement requirements enacted under President Donald Trump’s Working Families Tax Cut (WFTC) legislation, Public Law 119-21. The law applies to certain adults enrolled in Medicaid and ties coverage to participation in work, education, volunteering or job training activities.

CMS added that the pledged technology support is expected to generate long-term savings for states and taxpayers while improving the experience for Medicaid consumers. The agency shared the commitments come from companies that already work with state Medicaid programs on eligibility and enrollment systems.

A Government Accountability Office (GAO) review shared how difficult Medicaid system upgrades have been for states in the past. By September 2014, states had spent more than $1.8 billion in federal 90/10 matching funds to update or replace outdated eligibility IT systems.

While many states moved to full system replacements, others struggled with basic tasks such as transferring applications between Medicaid and federal exchanges. The GAO found that older systems typically lacked the capacity to support coordination, highlighting the need for continued investment in modernization.

In the recent announcement, CMS Administrator Mehmet Oz, M.D., said the initiative is designed to help states meet new requirements without adding unnecessary cost or complexity.

“Community engagement is not just a policy requirement—it is an opportunity for states to modernize Medicaid systems while strengthening connections to work, education, and community-based opportunities,” Oz said. “The Trump administration has demonstrated its power to convene time and again. By obtaining these voluntary commitments from industry, CMS aims to help states implement these requirements efficiently, reduce costs for taxpayers, and deliver a more streamlined and supportive experience to help lift beneficiaries back into our communities.”

CMS said the companies have committed to offering technology tools and services at no cost or at steep discounts to support eligibility system updates, automated data verification, testing environments and beneficiary engagement tools. These offerings are meant to support both compliance with the law and broader system modernization.

Dan Brillman, director of the Center for Medicaid and CHIP Services, said the focus has been on balancing policy implementation with innovation.

“From the outset, our focus has been on helping states implement these requirements efficiently while supporting new innovations in Medicaid that improve the beneficiary experience,” Brillman said. “We applaud vendors for their voluntary commitments and discounting their solutions, providing states with additional options as they plan their implementation and modernize their Medicaid systems.”

CMS issued initial guidance to states in late 2025 outlining the community engagement requirements. Since then, the agency said it has worked closely with states and technology vendors to align eligibility and enrollment changes and reduce administrative burden.

Those efforts have included expanded testing environments and automated, consent-based data verification for income, education and related activities. CMS has also developed an open-source tool called EMMY that streamlines eligibility determinations, provides access to verification data through application programming interfaces and offers free technical resources to states.

In addition, CMS has encouraged the use of outreach tools, community-based referral coordination systems and secure data sharing platforms to help states link beneficiaries with employment, education and training opportunities.

The voluntary commitments are also intended to help states make better use of government implementation funding while allowing room for longer-term investments in beneficiary-centered technology.

CMS is also working with the General Services Administration to make it easier for states to purchase technology solutions.

“Our partnership with CMS is driving action fast,” GSA Administrator Edward C. Forst said in the announcement. “By accelerating access to the GSA Schedule, we are helping states quickly adopt proven, transparently priced technology and strengthening direct connections with vendors that turn innovation into impact.”

CMS said it’s also hosted in-person and virtual demonstration sessions that allow states to see technology solutions related to eligibility, enrollment, automated data verification and coordination with community engagement activities.

States are required to implement the community engagement requirements by January 1, 2027, though they can choose to do so earlier. CMS noted it will continue to provide technical assistance, guidance and resources as implementation moves forward.

The agency added that the companies announced represent an initial group of participants and that additional commitments may follow as states and vendors continue to collaborate.