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Tri-Agency Letter on Details of Cost Allocation Waiver

SMD-1-23-12

Published: January 23, 2012

On August 10, 2011, we announced a time-limited, specific exception to the cost allocation requirements set forth in OMB Circular A-87 (Section C.3) that requires benefitting programs to pay their share of the costs associated with building State-based information technology systems. The exception allows Federally-funded human services programs to benefit from investments in the design and development of State eligibility-determination systems for State-operated Exchanges, Medicaid and the Children’s Health Insurance Program (CHIP).

This letter provides additional guidance on how States may take advantage of this exception to leverage these investments to serve multiple programs and needs. The U.S. Departments of Health and Human Services (HHS) and Agriculture (USDA) are committed to a strong partnership with States and our Federal partners as we work together to implement the Affordable Care Act.

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