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State Expenditure Reporting for Medicaid & CHIP

Medicaid & CHIP Expenditure Tracking System

CMS tracks state expenditures through the Medicaid Budget and Expenditure System (MBES) and State Children's Health Insurance Budget and Expenditure System (CBES). 

The MBES/CBES is a web-based application the Medicaid state agencies use to report budgeted and actual expenditures for Medicaid and the Children’s Health Insurance Program (CHIP).  

The system uses the information from each state to compute the amount of Federal Financial Participation (FFP) the Agency will provide to the state to fund program operations. The MBES/CBES also stores the state’s historical budget and expenditure records for data analysis purposes.

Medicaid Program Expenditure Forms

Two series of forms detail the quarterly anticipated and actual budget for Medicaid and CHIP. The forms distinguish between budget and costs associated with the program’s medical services, and budget and costs associated with program administration. 

  • CMS-37 form series: identifies anticipated quarterly budgeted costs
  • CMS-64 form series: identifies actual quarterly expenses   

States use both series of forms to input budget and expenditure data into the MBES/CBES. Based on the CMS-37 submission, CMS issues a grant award to the state authorizing federal Medicaid funding to the state for the certified quarter. 

For details on the claims process and requirements see Title 42 Part 430.30 of the Code of Federal Regulations.

Expenditures Must Reconcile

Actual state expenditures must reconcile with the monetary advance provided through the Form CMS-37 the state submitted for that quarter. 

States can submit a revised CMS-37 any time during the quarter if their initial request for federal funds was insufficient, as long as they provide justification. 

The amounts states report on Form CMS-64 must be actual expenditures, and must include supporting documentation like invoices, cost reports and eligibility records. The CMS-64 is due to CMS within 30 days after the end of the quarter.