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On April 14th, 2022, in a State Medicaid Director Letter (SMDL), the Centers for Medicare & Medicaid Services (CMS) introduced Streamlined Modular Certification (SMC) as the required certification method for states to receive federal financial participation (FFP) and, effective at the time of the letter, sunset the legacy processes known as Medicaid Enterprise Certification Toolkit (MECT) and Medicaid Eligibility and Enrollment Toolkit (MEET).

Introducing SMC as the required certification method reflects a strategic and intentional shift by CMS towards an outcome-based certification (OBC) approach and places a more targeted focus on health outcomes, project and program metrics, increased flexibility for states, and more data-driven operational reporting. SMC incorporates the feedback received from states that MECT and MEET were overly burdensome and failed to promote state Medicaid program success. It is important to note that all Medicaid enterprise system (MES) information technology projects initiated after the publication of the SMDL are required to follow SMC.

This issue brief outlines the top 10 things to know about streamlined modular certification and how states will be affected by the new certification process required for states to receive federal financial participation