This white paper emphasizes the critical need for accurate, standardized race and ethnicity (R/E) data to identify health disparities and improve equity in care delivery. The COVID-19 pandemic exposed major gaps in R/E data, delaying targeted public health responses. States like California are using health plan R/E data to guide equity-focused interventions, but widespread collection remains inconsistent due to regulatory variability, reluctance to self-identify, and lack of standardization. The paper highlights the role of health plans and health information exchanges (HIEs) in improving data quality and offers recommendations, including mandating standardized data collection across all health plan lines of business and leveraging HIEs as centralized R/E data hubs. Improved data is essential to addressing systemic inequities and guiding meaningful reform.