Quality, Health IT and Cost Containment Overview   

With health reform comes the need to modernize the nation’s health care system in ways that reduce the rate of growth in  costs while improving quality. Health information technology (HIT), such as electronic prescribing, electronic medical records, and online communication with health care providers, offers an opportunity for states to move in such a direction. Appropriate use of health information technology can lead to better management of chronic conditions, fewer unnecessary tests, a lower number of prescribing errors, and easier patient access to clinical records and medical advice.

Prior to the Patient Protection and Affordable Care Act (PPACA), many states tried to improve quality through a greater use of HIT and health information exchange (HIE). For example, they updated privacy laws that were written for a paper age and reconsidered licensing laws to allow professionals in other states access to medical data. Additionally, the federal Health Information Technology for Economic and Clinical Health Act (HITECH) enacted in 2009 provides incentives for states to expand the use of electronic health records and HIE with the goal of improving the quality and coordination of patient care.

 PPACA requires secure and interoperable standards and protocols that simplify enrolling people electronically into government health and human service programs. These standards will allow matching eligibility information with existing federal and state vital records and employment data. The act authorizes grants to states and local governments to update technology systems to meet new standards.

NCSL is producing a variety of resources on using HIT to improve quality with a special emphasis on how state legislators can make best use of federal funds. NCSL also has a legislative database on state HIT bills and produces a monthly newsletter that follows state and federal actions and new research. 

Cost Containment:   The Affordable Care Act takes several steps to manage costs and encourage or require efficiencies. NCSL has numerous reports that illustrate ways to save money while aiming at better quality care. These include provisions for Medical Homes, marketing transparency, pharmaceutical changes, insurance rate review and consumer rebates.
 
Updated 2013