Information Technology Authorization Committee

Wednesday, February 20, 2002

2:00 – 4:00p.m.

ASU Downtown Center, 502 E. Monroe, Phoenix Arizona 

Minutes 

Present

Absent:

Call to Order at 2:00p.m. by Chairman Craig Stender.
Call of the Roll

Director’s Report                                                                                              

Approval of January Minutes

Motion to approve by Dave Byers; second by Tom Betlach.  Approved.                                                                                         

Project Approval

AHCCCS

l HAPA Claims Project

Frank Somers, GITA Oversight Manager

AHCCCS Presenters:  Jim Wang, CIO

Faye Makishima, Hawaii Project Manager 

Craig Stender            You’re going to be implementing this using the existing system?

Jim Wang            We’re going to take our existing system, replicate it with no HIPAA changes.  After the project implementation, we will become HIPAA compliant, both compliant at the same time.  It will be one set of software and we’ll make that compliant for October 2003.  It gives you the flavor of the impacts of HIPAA with the Hawaii project.

Laraine Rodgers            Is the cost to make the software HIPAA compliant an additional project?

Jim Wang            The HIPAA project is an additional project and I believe that will be presented in the next month or so to this Committee.

Laraine Rodgers            Will you then need that level of resource past the October 2003 deadline and, if so, have you computed the four-year impact of that going forward?

Jim Wang            We will not have the entire project team dedicated for the entire period.  We will have the entire team dedicated to post implementation support for 60-90 days, unless the system is up and running and working perfectly.  In systems, we want to hold back just in case.

Dave Byers            You say there is no cost to Arizona for this development.  What’s the benefit to Arizona?

Jim Wang            The benefit to Arizona is very much like the first phase, meaning we share in the maintenance, costs, also enhancements, the system development costs, all shared.  That means right now we share costs in the other core sub-systems; if there are enhancements made, then we share in those costs.

Dave Byers            Will AHCCCS be reimbursed by the Feds 90 percent?

Jim Wang            Some of those costs are reimbursed, for example, if we have shared costs for the HIPAA project, that’s a development project.  That is funded at 90 percent Federal dollars and we split the costs between the two states.  If it’s in another system where the sharing is either 50 or 75 percent, then we take the remaining portion and the not-Federally funded portion and we split that 50 percent.

Dave Byers            So we’re doing two separate projects and the Feds would have to pay twice.

Jim Wang            Correct.

Dave Byers            The taxpayer eventually will pay less Federal and State taxes by having Arizona and Hawaii work together.

Jim Wang            There is a definite benefit to all parties involved, especially the taxpayer.

Craig Stender            You mentioned there are four sub-systems?

Jim Wang            Recipient, health plan, encounters and claims.  The first three are the managed care components, the last one is the fee for service processing.

John Jacobs            From what we have reporting back to ITAC, your project is very successful.  Are any other states doing a project like this?

Jim Wang            There are no other states that have jointly done any sort of a system together, in terms of MMIS.

John Jacobs            What kind of reaction does the Federal government have on doing successful project like this, do you get any stars for that?

Jim Wang            We certainly have a lot of support and received some benefits in terms of examples are the post-implementation period for this project.  Typically it is three months and we're allowed to extend it out. Our relationship with CMS is very good.

Laraine Rodgers            I think in terms of the role modeling and there is innovation funding out of Washington, that is two state agencies of Federal, state and local do come together to work on this, there is additional incentive funding that does exist.  I think also whether it’s CIO or other groups, I think to showcase this, because this is truly an example of partnership, working together, the enterprise value model talks about these types of things.  There is another couple weeks to submit this as something to be highlighted as a way to effectively work together.  Look on the CIO web site and Firstgov in Washington.  I would be happy to take this forward to Firstgov.  This is wonderful that the states work together in a win-win situation.

Craig Stender            Have you been approached by any other states to join in?

Jim Wang            That’s a loaded question!  Yes, we have been approached by other states and our response has been, for today, thanks but no thanks at this point in time because we’re undertaking this project and we have HIPAA.  We want to make sure we have experience under our belt before considering an expansion of the partnership to any other state.

Laraine Rodgers            Couldn’t you showcase this on NASCIO?  I think I heard you say earlier that the practices you used helped make it successful, as well as the software.  Because the software is only part of it; you had to reach agreement on the operations within your agencies and that is where the efficiencies come in going forward.

Frank Somers            Have AHCCCS employees traveled to Hawaii to review what Hawaii is doing?

Jim Wang            Certain members have been to Hawaii.

Faye Makishima            We did make a mutual agreement that there would  be dedicated face-to-face time.  As much as technology allows us to transmit information electronically or by conference calls, there is an added benefit to being together for certain portions of the development process.  When Hawaii finished their requirements, there were long grueling sessions and again through the initial high-level design piece. 

Laraine Rodgers            In terms of security, privacy, etc., I’m sure you agreed on what the standards were for that?

Jim Wang            Right.  We have a security module built in to the mainframe base system and the same security module is in use by both states.

Laraine Rodgers            Do you have folks going from Hawaii to Arizona, is there down the road possibility of information sharing?

Jim Wang            The data is stored in separate areas and AHCCS is restricted.  Arizona users only have access to Arizona data.

Craig Stender            We’ll need to get a motion and take the votes.

Motion by John Jacobs to approve; second by Laraine Rodgers.  Approved. 

Status Report

l ADOA Data Center Consolidation

ADOA Presenters:  Dwayne Allen; Tara Roesler; Vince Cefalu

ADOT Staff:  Derek Rushing; Gary Ricketts

DOR Staff:  Dennis Frederickson; Peggy ? 

Information item; questions and answer discussion followed 

Project Approval

Department of Administration

l Mainframe Upgrade 

Frank Somers, GITA Oversight Manager

ADOA Presenters:  Vince Cefalu; Tara Roesler

Motion by Dave Byers; second by John Jacobs.  Approved. 

Status Report

·        ADOA Data Center Consolidation

ADOA staff:  Dwayne Allen, Tara Roesler, Vince Cefalu

ADOT staff:  Derek Rushing, Gary Ricketts

DOR staff:  Peggy Bowcott, Dennis Frederickson 

Information item:  question and answer discussion followed. 

Project Approval

·        ADOA Mainframe Upgrade

Frank Somers, Government Information Technology Agency Oversight Manager

ADOA Staff:  Vince Cefalu, Tara Roesler

Motion by Dave Byers; second by John Jacobs  Approved. 

Government Information Technology Agency/ITAC Conditional Approvals Affecting the Procurement Process

Tabled to next meeting 

PIJ Status Report

No discussion 

Other Business

No discussion 

Meeting adjourned at 4p.m.