The Michigan Department of Health and Human Services has launched the nation's first cloud-based Medicaid system by working with a number of departments and developing a partnership with the State of Illinois.

The cloud-based system was created by using Medicaid Management Information System technology.

This is the second phase of the nation’s first completely automated real-time and cloud-enabled system.

“It’s important for Michigan to look for more and better ways to take advantage of technology to improve services for our residents,” Gov. Rick Snyder said. “This is an innovative approach, allowing us to more efficiently share information and resources in real-time, helping residents get the health care they need.”

The cloud solution creates savings and opportunities for Michigan and Illinois to share knowledge and resources.

The two-state agreement was made in August 2013 to develop a new Medicaid system that uses technology to reduce costs and improve service.