States will need to modernize their IT systems to fulfill their new and expanded responsibilities. A critical first step will be to conduct an analysis of IT infrastructure across programs, agencies and sectors to identify critical needs and opportunities.

*Milestone details:

*Full name: Conduct an analysis of existing IT systems and identify areas in need of modernization.

*Relevance to the ACA:

The ACA will bring millions onto coverage—and significantly change and sometimes expand existing state responsibilities. Modern IT systems will be critical for administering public and private coverage programs, ensuring data quality, developing new reimbursement structures, and complying with new federal operating rules and standards. The ACA does not require an analysis of IT systems, but states will want to conduct an assessment to identify areas where modernization is most needed or will produce the greatest benefit. The ACA does include funding for states for IT improvements. Some relevant provisions are:

§1311 – Allows increased reimbursement for providers who implement IT to improve patient safety and reduce medical errors.

§1561 – Authorizes grants to states to develop enrollment systems.

§3011 – Requires the Secretary, in consultation with state Medicaid and CHIP agencies, to incorporate quality measurement into HIT strategic plans required under ARRA.

§4302 – Requires all federally supported healthcare programs to report demographic data consistent with national standards for interoperability and security of data systems.

§6114 – Demonstration program for use of HIT in nursing facilities to improve patient care.

§6504 – Requires additional reporting through Medicaid information systems to detect fraud and abuse.