HHS has awarded $103 million to 27 states, supporting programs designed to improve the way Medicaid dollars are used. Congress has approved a total of $150 million for these "transformation grants," which will distributed over fiscal '07 and '08. States will be able to use the funds for a variety of purposes, including development of programs to encourage EMR, clinical decision support tools or e-prescribing; increasing utilization of generic drugs; implementation of a medication risk management programs and improving access to primary care and specialty physicians using integrated university-based hospitals and clinics.

To learn more about the Medicaid grant program:
- read this press release [1] from HHS, which lists state awards
- get more background [2] on the grant guidelines