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HHSC Enters FY 2025 With Millions for Tech Projects

The Health and Human Services Commission continues its path to modernization with large funding sums for Medicaid systems, an integrated eligibility system and other IT efforts.

Aerial view of a wooden tabletop with an open laptop on it beside a stethoscope, a latte and a notebook with glasses and a pencil sitting on it. A person is seated in front of the laptop holding out a clipboard with a piece of paper on it that says "Medicaid."
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The Health and Human Services Commission (HHSC) has $46.3 billion in allocations for the coming year, including funds for ongoing system modernization. This is $800 million less than FY 2024.

Funding is listed in the state’s General Appropriations Act, signed into law during odd-numbered years. The following amounts are for the fiscal year beginning Sept. 1.

Medicaid Management Information Systems (MMIS) improvements will provide a system conforming to national standards and eliminating dated processes and technology. HHSC has $66.2 million in its 2025 capital budget for MMIS, up from $64.1 million in 2024.

Additional funded technology in 2025:
  • $69.6 million for Texas Integrated Eligibility Redesign System (TIERS) capital projects
  • $87.7 million for data center consolidation
  • $18.5 million for Centralized Accounting and Payroll/Personnel System (CAPPS)
  • $8.6 million for the HHSC cloud data analytics platform
  • $2.1 million for business process redesign

HHSC in 2022 outlined its strategic plan for 2023-27, and those documents list tech-related action items with goal dates in the coming year. They include:
  • Standardizing data release processes
  • Continuing data visualization releases
  • Improving IT contract management
Rae D. DeShong is a Dallas-based staff writer and has written for The Dallas Morning News and worked as a community college administrator.