New CMS Provider Directory Rules July 1, 2025

For complete 2025 compliance requirements → https://www.leaporbit.com/compliance

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On July 1, 2025, new federal regulations under Section 5123 of the Consolidated Appropriations Act, 2023 (CAA, 2023) will require Medicaid and Children’s Health Insurance Program (CHIP) provider directories to be more accurate, accessible, and frequently updated.  

These Centers for Medicare & Medicaid Services (CMS) regulations bring Medicaid and CHIP in line with Medicare and commercial plans, and noncompliance could lead to corrective actions or reduced federal funding.

Here’s what’s changing—and how Medicaid and CHIP health plans can prepare.

Who Is Impacted by These New Requirements?

The new provider directory requirements outlined in the Consolidated Appropriations Act, 2023, specifically impact Medicaid and CHIP. These rules apply to:

• Medicaid Fee-for-Service (FFS)

• Medicaid Managed Care Organizations (MCOs)

• CHIP Fee-for-Service (FFS)

• CHIP Managed Care Entities

Who Is Not Directly Impacted?

• Medicare Plans – Medicare directories are not included in these mandates, though they are subject to separate CMS regulations.

• Commercial Health Plans – Employer-sponsored insurance, ACA marketplace plans, and other private health plans are not bound by these specific requirements, but may have similar state-level regulations.

Similar requirements have been in place for years in Medicare Advantage and ACA marketplace plans—especially in terms of directory accuracy and quarterly updates—though they are governed by different regulations such as the No Surprises Act and Interoperability Rule.

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Key Updates Health Plans Need to Know

✅ Increased Update Frequency

• New Requirement: Provider directories must be updated at least quarterly (previously annual updates).

• Impact: Health plans must establish processes for more frequent and timely updates to avoid outdated or misleading provider information.

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✅ Expanded Data Requirements

Health plans must now include additional data elements in provider directories. Patients should be able to search for:

• Telehealth Availability – Whether a provider offers covered services remotely via telehealth.

• Physical Disability Accommodations – Accessibility details for offices, exam rooms, and equipment.

• Linguistic and Cultural Competency – Including available spoken languages, American Sign Language (ASL), and cultural expertise.

• Internet Presence – Provider’s website, if applicable.

• Provider Availability – Whether the provider is accepting new Medicaid or CHIP patients.

• Expanded Provider Types – Inclusion of mental health services, substance use disorder services, and long-term care providers.

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✅ Provider Directory API Mandate

• New Requirement: Medicaid and CHIP directories must be publicly accessible via an HL7 FHIR-compliant API.

• Impact: Plans must ensure technical infrastructure is in place for real-time provider data updates through API integration.

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✅ Compliance Deadline and Non-Compliance Measures

• Health plans must comply by July 1, 2025.  

• CMS will issue corrective action plans (CAPs) for non-compliance.

• Penalties: Non-compliant systems may lose federal funding participation (FFP), dropping from 75% to 50% reimbursement for directory-related costs.

• States can request federal funding (FFP) at 90/10 for system improvements if they submit an Advanced Planning Document (APD).

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10-Step Action Plan for Health Plans

1. Assess Current Directory Systems

• Conduct a gap analysis between existing provider directory capabilities and the new requirements.

• Identify missing data fields (telehealth, disability accommodations, cultural competencies).

2. Engage IT Teams & Vendors

• Develop a roadmap for integrating HL7 FHIR API for interoperability.

• Identify automation opportunities for real-time updates.

3. Establish Internal Compliance Task Force

• Assign a compliance lead to oversee updates and reporting.

• Coordinate with provider relations teams to communicate new mandate and impact to providers

4. Pilot & Test Quarterly Update Process

• Implement and test automated provider data updates to meet the quarterly update requirement.

• Validate data accuracy to avoid compliance risks.

5. Enhance Data Collection Methods

• Partner with providers to ensure all required fields (accessibility, language services) are properly documented and received

• Implement quality control processes to monitor provider data integrity.

6. Submit Funding Requests (If Needed)

• Apply for enhanced federal financial participation (FFP) at 90/10 to cover development costs.

7. Full Implementation & Compliance Audit

• Conduct a final audit to confirm compliance with quarterly update requirements.

• Verify HL7 FHIR API functionality and ensure public accessibility.

8. Staff Training

• Train internal teams on new provider directory processes.

9. Provider Engagement

• Conduct outreach to providers to ensure they update their directory information regularly.

10. Prepare for CMS Review & Reporting

• Have a corrective action plan (CAP) template ready in case of compliance challenges.

• Maintain documentation of updates, training efforts, and data accuracy reports.

How Leap Orbit Keeps Health Plans Compliant

Meeting the July 1, 2025 requirements isn't just about checking boxes—it's about implementing systems that maintain compliance automatically, without overwhelming your team.

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Here's how Leap Orbit's platform addresses each new mandate:

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1. Searchable Fields: Built-In by Default

CareFinDr makes all newly required fields searchable without custom development:

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✅ ADA Accommodations – Wheelchair accessibility, accessible exam rooms, adaptive equipment
✅ Cultural Competencies – Languages spoken (provider and staff), interpreter services
✅ Specialized Training – Board certifications, fellowships, evidence-based modalities
✅ CHIP Locations – Location-specific CHIP acceptance (not just provider-level)
✅ Telehealth Services – Types offered, service-specific availability

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No configuration needed. These filters are native to the platform and automatically update as you add provider data.

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2. FHIR API Compliance: Turnkey Implementation

For Medicaid and CHIP plans: CareFinDr includes a public-facing HL7 FHIR 4.0.1 API that meets CMS requirements out of the box.

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What you get:

• Public accessibility (no authentication required)
• Real-time provider data updates
• Algorithmic data mastering from 100+ national/regional datasets
• 99% data enrichment from NPPES, CAQH, and state licensing boards
• Single source of truth across all systems

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Proven track record: Maryland Medicaid deployed our Convergent platform to meet the 2021 CMS Interoperability Rule deadline, providing statewide FHIR API access.

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No IT team required. No custom development. Just compliance.

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3. Automated Update Workflows

The 2 Business Day Challenge:
When a provider changes their phone number, address, or network status, you have 2 business days to update your directory. Manual processes can't keep up.

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CareFinDr automates the entire pipeline:

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✅ Data Ingestion → Secure roster uploads via SFTP, API, or portal
✅ AI Validation → Cross-checks against NPPES, CAQH, state boards
✅ Quality Scoring → Flags low-confidence changes for review✅ Auto-Publishing → Updates flow to directory within hours✅ Audit Trail → Every change timestamped and documented

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Result: Updates that used to take 7-10 days now happen in 24 hours—well within the 2 business day requirement.

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4. 90-Day Verification Made Simple

The Manual Approach:
For a 5,000-provider network, 90-day verification means contacting 55+ providers daily. Most plans can't sustain this.

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CareFinDr's Automated Verification:

• Provider portals allow real-time self-service updates
• Automated outreach via email/SMS with response tracking
• Smart scheduling distributes verification across the 90-day window
• Escalation workflows for non-responders
• Compliance dashboards show exactly which providers are due

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Customer result: One regional health plan reduced verification staff from 8 FTE to 2 FTE while improving accuracy from 78% to 96%.

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5. Audit-Ready Documentation

When CMS audits your directory, you need to prove:

• When each provider was last verified
• How you received and processed updates
• Your accuracy improvement efforts
• Response to member complaints

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CareFinDr provides:

• Automated compliance scorecards showing accuracy by specialty, region, plan
• Complete audit trails with timestamps for every directory change
• Verification history for every provider (dates, methods, responses)
• One-click CMS audit packages with all required documentation

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No scrambling during audits. All documentation generated automatically.

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6. Enhanced Federal Funding Eligibility

For Medicaid/CHIP plans: States can receive 90/10 enhanced FFP for provider directory system improvements.

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CareFinDr qualifies because it:

• Meets HL7 FHIR API requirements
• Provides public-facing, accessible directories
• Includes all Section 5123 searchable fields
• Supports automated 90-day verification

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We help you: Document system capabilities for your state's Advanced Planning Document (APD) submission to secure enhanced federal funding.

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7. Proactive Compliance Support

Unlike legacy vendors, Leap Orbit doesn't wait for regulations to force upgrades. We're proactively working with all CareFinDr customers to ensure readiness ahead of July 1, 2025.

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You get:

• Compliance gap analysis comparing your current state to requirements
• Implementation roadmap with timeline and milestones
• Data collection templates for new required fields
• Training resources for your team
• Dedicated support through the transition

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Bottom line: CareFinDr automatically reflects the most recent update dates and required fields, requiring no additional action from your team.

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Ready to Simplify Compliance?

Contact us today for a free consultation with one of our Compliance Experts.