This final rule requires—for the first time—that states, the District of Columbia (DC), and certain territories mandatorily report measures on the quality of health care provided to Medicaid and CHIP beneficiaries. Prior to this rule, states voluntarily reported quality measures from the Medicaid Child Core Set and the Adult Core Set. This rule implements mandatory annual reporting of the Child Core Set and the behavioral health measures on the Adult Core Set using a standardized format. It also establishes reporting requirements of measures in the Health Home Core Set for states that elect to implement one or both of the optional Medicaid health home benefits. Medicaid is an important source of health insurance covering over one in five rural residents under the age of 65.