Nine states already have implemented electronic health records for Medicaid patients and 27 more states are doing likewise, according to a new report from the inspector general of the Health and Human Services Department.

The report, which is based on surveys of state authorities, concluded that states are making progress in implementing health information technology. It urged the Centers for Medicare and Medicaid Services -- the HHS agency that works with states to provide Medicaid for individuals and families who earn low incomes -- to keep working with the states in pursuit of the Bush administration’s goal of e-health records for Americans by 2014.

Health IT has the double-barreled effect of improving the quality of care while reducing costs in areas such as medical errors, inappropriate care and inefficiency, the report notes. It states that state officials were implementing EHRs primarily to increase quality but also to hold down costs.

Most of the EHR projects rely on Medicaid claims information rather than clinical information supplied by health care providers.

Besides the nine states that have implemented EHRs, three more have undertaken other health IT projects such as e-prescribing, remote monitoring of diseases and personal health records for Medicaid recipients. Also, 25 state Medicaid agencies are participating in the development of state health information exchanges, the report states.

Thirteen states are incorporating CMS’ Medicaid Information Technology Architecture (MITA) into their health IT planning, according to the IG. MITA provides guidance on developing standards-based, interoperable information systems.

The report suggests that CMS require states to implement MITA in order to receive 90 percent funding of their new Medicaid Management Information Systems (MMIS). CMS officials told the IG they have “plans to revise the MMIS funding criteria to reflect the goals of MITA,” the report states.

The IG also recommended that CMS collaborate with other agencies in developing policies to keep patients’ Medicaid information secure and private. CMS also should continue to work with HHS’ Office of the National Coordinator for Health IT, it states. CMS concurred with all the recommendations, according to the report.

The report includes a state-by-state list of Medicaid-related health IT initiatives.