79
THE SENATE                           S.C.R. NO.            
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
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                    SENATE  CONCURRENT
                        RESOLUTION

  REQUESTING AN AUDIT OF STATE MONEYS PAID FOR HEALTH INSURANCE
    FOR STATE EMPLOYEES.
 


 1        WHEREAS, the Hawaii Medical Service Association (HMSA) is
 2   affiliated with the Blue Cross-Blue Shield Plan and is a
 3   nonprofit mutual benefit society established to provide medical
 4   and hospital insurance coverage and health care services
 5   coverage; and
 6   
 7        WHEREAS, the Hawaii Public Employees Health Fund (HPEHF)
 8   provides medical and other coverage for active and retired
 9   state and county employees, through contracts with health plan
10   providers, including the HMSA; and
11   
12        WHEREAS, health benefit plans of employee organizations
13   also contract with HMSA, using HPEHF moneys; and
14   
15        WHEREAS, the State and counties, through HPEHF, have a
16   significant contractural relationship with HMSA that involves
17   the payment of millions of dollars of moneys of government
18   employees and state and county moneys, such as the payment of
19   over $100 million in premiums for fiscal year 1997-1998; and
20   
21        WHEREAS, state contracts with HMSA also cover payments for
22   Medicaid, QUEST, and the aged, blind, and disabled program,
23   among others (collectively referred to as programs); and
24   
25        WHEREAS, the volume of state funds being conveyed annually
26   to HMSA comprises a significant sum that has not been subjected
27   to state audit; and
28   
29        WHEREAS, the Auditor is the State's constitutional office
30   responsible for auditing state agencies and entities receiving
31   state moneys, for the purpose of determining whether or not
32   those moneys are being expended effectively and efficiently;
33   and
34   
35        WHEREAS, the legislature hereby intends to exercise its

 
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                                  S.C.R. NO.            
                                                        
                                                        

 
 1   oversight fiduciary responsibility over moneys spent by the
 2   State; now, therefore,
 3   
 4        BE IT RESOLVED by the Senate of the Twentieth Legislature
 5   of the State of Hawaii, Regular Session of 2000, the House of
 6   Representatives concurring, that the Auditor is requested to
 7   conduct an audit of all funds paid to HMSA for HPEHF coverage
 8   and other programs, for fiscal years 1997-1998, 1998-1999, and
 9   1999-2000, and any other years the Auditor deems appropriate;
10   and
11   
12        BE IT FURTHER RESOLVED that the audit include, but not be
13   limited to:
14   
15        (1)  Assessment of compliance with contract terms, and
16             federal requirements, if applicable; 
17   
18        (2)  Accounting of any surpluses and profits; and
19   
20        (3)  Recommendations for establishing alternative
21             oversight of funds paid to HMSA, if appropriate;
22   
23   and
24   
25        BE IT FURTHER RESOLVED that HMSA, HPEHF, Department of
26   Budget and Finance, State Insurance Commissioner, and all
27   employee organizations offering health benefit plans cooperate
28   with the Auditor for purposes of this audit; and
29   
30        BE IT FURTHER RESOLVED that the Auditor report on findings
31   and recommendations to the legislature no later than twenty
32   days before the convening of the Regular Session of 2001; and
33   
34        BE IT FURTHER RESOLVED that certified copies of this
35   Concurrent Resolution be transmitted to the Auditor, HMSA,
36   Administrator of HPEHF, State Director of Finance, and State
37   Insurance Commissioner.
38 
39 
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41                         OFFERED BY:  ____________________________