HI HCR184

Requests the Auditor to conduct a comprehensive financial audit of the Department of Human Services Med-QUEST Division with emphasis on the Medicaid Program.

Requires review of financial records, accounting systems, internal controls, transactions, and compliance procedures for all Medicaid processes including QUEST health plans, QUEST Expanded Access plans, fee-for-service programs, and claims processing systems.

Audit is prompted by prior audits identifying significant deficiencies including poor management control practices, weak internal controls, inconsistent collection of co-payments, and diminished oversight of capitation payment reconciliations.

Notes that Medicaid covers 23% of Hawaii's residents (approximately 290,496 members), costs $4 billion over the 2013-2015 fiscal biennium, and requires evaluation given projected growth and expansive budget requests.

Requires the Auditor to submit a report with findings, recommendations, and any proposed legislation to the Legislature no later than 20 days prior to the convening of the Regular Session of 2014.