Report Title:

Medicaid; Procurement; Health and Human Services

 

Description:

Requires the department of human services to award medicaid contracts to nonprofit insurance entities only.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1525

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to medicaid.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. Recently, the state department of human services procured for the administering of a new managed care program, QUEST Expanded Access, for the aged, blind and disabled population. The bids were awarded to only two for-profit insurance companies to provide medicaid coverage for Hawaii 37,000 aged, blind and disabled residents. Several states have found a number of serious violations of law and medicaid fraud in administering similar medicaid programs through for-profit insurance companies. As a result, laws and legislation across the nation have surfaced that permit only nonprofit and government‑related entities to bid on medicaid contracts.

The purpose of this Act is to require all future medicaid procurement contracts to be awarded only to qualified nonprofit entities.

SECTION 2. Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"103F-   Procurement of medicaid contracts; nonprofits. For the procurement of all medicaid contracts in the State, the department of human services shall solicit proposals only from nonprofit insurance entities and award contracts only to nonprofit insurance entities."

SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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