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HB 1167

Department of Information Technology - Workgroup on the Medicaid Management Information System Mainframe System Replacement

2026 Regular Session Introduced by Bonnie Cullison and 10 co-sponsors

Maryland creates workgroup to plan replacement of outdated Medicaid mainframe system processing billions in state healthcare claims annually.

Rereferred to Education, Energy, and the Environment and Finance
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Bill Summary · HB 1167

Legislative bill overview

HB 1167 establishes a workgroup within Maryland's Department of Information Technology to evaluate and plan the replacement of the state's aging Medicaid Management Information System (MMIS) mainframe. The bill directs this workgroup to assess current system capabilities, identify modernization needs, and develop a comprehensive replacement strategy with cost estimates and implementation timelines.

Why is this important

Maryland's MMIS mainframe processes billions in Medicaid claims annually and serves hundreds of thousands of beneficiaries. An outdated system increases risks of payment delays, data breaches, and service disruptions. Modernizing this critical infrastructure is essential for program integrity, operational efficiency, and protecting sensitive health information as technology standards evolve.

Potential points of contention

  • Cost and funding: Mainframe replacement projects typically cost hundreds of millions of dollars; unclear how Maryland will fund this without raiding other budget priorities or federal Medicaid reimbursement delays
  • Implementation timeline and disruption: Transitioning from a legacy system risks temporary service interruptions, claims processing errors, or provider payment failures if the migration is mishandled
  • Scope creep and vendor selection: Workgroup recommendations could lead to expensive system redesigns or vendor lock-in; risk of selecting technology that becomes outdated before implementation completes

Compiled from official sources — confirm details with the bill’s official record.

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