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SCR 46

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 auditor must conduct biennial management and financial audits of state Medicaid contractors to improve program oversight and financial accountability.

Referred to HHS, WAM.
#managedcareorganizations #managementandfinancialaudits #medicaid #medicaidhealthcareinsurancecontracts #stateauditor
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Bill Summary · SCR 46

Legislative bill overview

SCR 46 requests that Hawaii's state auditor conduct comprehensive management and financial audits of the state's Medicaid health care insurance contractors every two years. This is a resolution, meaning it expresses legislative intent rather than creating binding law, and directs an executive agency (the auditor) to implement a specific oversight practice.

Why is this important

Medicaid contractors handle hundreds of millions in state and federal healthcare dollars annually. Regular independent audits can identify inefficiencies, financial irregularities, fraud, or service delivery problems that might otherwise go undetected. Given that Medicaid serves Hawaii's most vulnerable populations, oversight directly affects both program integrity and quality of care.

Potential points of contention

  • Cost and auditor capacity: Biennial audits of multiple contractors require significant auditor resources; critics may question whether the state auditor's office has sufficient staffing and budget to perform these reviews without delaying other audit responsibilities.
  • Regulatory overlap: Federal Medicaid programs already require audits and monitoring; some may argue additional state audits are duplicative or that resources should focus on state-specific issues federal audits miss.
  • Contractor concerns: Health insurance contractors may argue frequent audits increase administrative burden, compliance costs, and potential service disruptions—costs that could indirectly affect healthcare delivery or premiums.

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

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