Even though there's extra time to get in compliance with the Health Insurance Portability and Accountability Act's electronic data interchange standard, it's best to be working hard now to avoid being slammed when the deadline Oct. 16, 2003 for those who request an extension finally arrives. To that end, the Centers for Medicare & Medicaid Services April 4 sent state Medicaid directors a set of tools to help them get into compliance. Among them: a "HIPAA readiness checklist" designed "to assist states in cataloguing the actions they have taken, and those they plan to take, to become HIPAA compliant." The checklist also contains benchmarks crafted to measure progress on coming to terms with the transaction standard. In addition, the letter includes information on how states can secure funding for updating their information systems. Editor's Note: To see the letter, go to www.hcfa.gov/medicaid/letters/smd40402.pdf.