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SR 29

REQUESTING THE AUDITOR TO CONDUCT A MANAGEMENT AND FINANCIAL AUDIT OF THE STATE'S MEDICAID HEALTH CARE INSURANCE CONTRACTORS ON A BIENNIAL BASIS.

2025 Regular Session Introduced by Kurt Fevella and 3 co-sponsors

Hawaii requests its state auditor review Medicaid contractors' management and finances every two years to enhance oversight and accountability of healthcare spending.

Referred to HHS, WAM.
#managedcareorganizations #managementandfinancialaudits #medicaid #medicaidhealthcareinsurancecontracts #stateauditor
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Bill Summary · SR 29

Legislative bill overview

SR 29 is a non-binding resolution requesting Hawaii's state auditor to conduct comprehensive management and financial audits of the state's Medicaid health insurance contractors every two years. The resolution does not create law but formally asks the auditor's office to implement this biennial review process to oversee contractor performance and fiscal accountability.

Why is this important

Medicaid represents a substantial portion of state healthcare spending and relies on private contractors to manage and deliver services. Regular audits can identify inefficiencies, cost overruns, contract violations, or service delivery problems, potentially saving taxpayer money and improving care quality. However, this requires auditor resources and may increase administrative costs.

Potential points of contention

  • Auditor capacity: The auditor's office has limited staff and competing audit responsibilities; mandating biennial audits may strain resources or delay other priority audits
  • Contractor burden: Frequent comprehensive audits could increase administrative costs for contractors, which may be passed to the state or reduce service funding
  • Scope definition: The resolution doesn't specify audit scope, methodology, or which specific contractors are included, leaving implementation details undefined and potentially subject to negotiation

Compiled from official sources — confirm details with the bill’s official record.

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