Illinois Medicaid upgrade to use Michigan system

State officials have announced an interstate partnership with Michigan to update Illinois' outdated Medicaid information management system.

Under the agreement, Illinois will be able to use Michigan's information system for Medicaid, the state and federal program that pays medical expenses for the poor and disabled.

Illinois' current system is more than 30 years old. Illinois Department of Healthcare and Family Services Director Julie Hamos says the joint venture will save taxpayers' money. Officials estimate saving $10 million for Illinois and $76 million for the federal government, which is helping to fund the Illinois improvements.

The first phase of the system will launch in early 2014. The Michigan system was built by Gaithersburg, Md.-based CNSI, which was chosen in a competitive process.