APDs 101

Everything to know about APDs

Please note: Any reference to "State" or "States" within this page is inclusive of the Territories.

What is an APD?

Advance Planning Document (APD) refers to an Initial advance automated data processing (ADP) planning document or Initial APD, providing a recorded plan of action to request funding approval for a project which will require the use of ADP services or equipment, including the use of shared or purchased services in lieu of State acquired standalone resources. (45 CFR 95.610)

More simply, APDs provide a standardized way for States to request Federal funding to support Information Technology (IT) projects which will advance, improve, or support a State's Medicaid program.

Legal requirements

Medicaid APDs are used in three program areas: Health Information Technology for Economic and Clinical Health (HITECH), Medicaid Management Information System (MMIS), and Enrollment & Eligibility (E&E). Regulations governing these programs are found at 42 CFR 495, Subpart D (HITECH Specific), 45 CFR 95, and 42 CFR 433 with additional guidance located within the State Medicaid Manual and subregulatory guidance documents, such as State Medicaid Director Letters.

In order to qualify for any Federal Financial Participation (FFP), State's must submit APDs to the Centers for Medicare and Medicaid Services (CMS) for approval prior to obligating any Federal funding to a project. Failure to comply with this requirement, known as prior approval, may result in states not receiving Federal funding for a portion or the entirety of a project.

Different types of APDs

There are three high level funding areas HITECH (IAPD only), MMIS, and E&E.

There are three broad types of APDs, reflecting where a project may be in development: planning, implementation/installation, or maintenance/operations.

They are aptly named as such:

• Planning APD (PAPD)
• Implementation APD (IAPD)
• Operational APD (OAPD)

Updates to the existing APDs can also be submitted and are named accordingly:

• Planning APD Update (PAPD-U)
• Implementation APD Update (IAPD-U)
• Operational APD Update (OAPD-U)

APD Contents

APDs contain details to explain the Who, What, When, Why, How, and How Much for projects.

More formally, the document provides:

• A statement of needs and objectives for a particular project/activity
• A project management plan which includes activities, timelines, and resource requirements
• A budget for the project
• A description of how the project will be paid for (Federal, State, other)

APD Creation, Submission, Review, Response and Decision Cycle

APDs are authored by States/Territories and submitted to CMS for review. The review of the APDs are conducted with a multi-disciplinary team and coordinated by the Medicaid Enterprise Systems State Officer. Any questions/clarifications around the APD are submitted to the State for response and, if needed, updates to the submission. Final decisions on APDs are communicated through a formal letter to the State.