HI SB3304

Requires the Hawaii state auditor to conduct biennial audits of all Medicaid managed care contractors, subcontractors, and provider networks, examining claims data, network adequacy, contract compliance, and program integrity safeguards

Establishes a separate biennial audit of the Department of Human Services and its med-QUEST division, reviewing data governance, federal reporting accuracy, secret shopper survey implementation, and overpayment detection and recovery processes

Mandates the first audits be completed by January 1, 2027, with reports submitted to the governor and legislature at least 20 days before the 2027 legislative session

Grants the auditor authority to access contractor claims systems, pharmacy benefit records, external quality review documents, and department enrollment files, with requirements for data use agreements to protect health information

Appropriates an unspecified sum from general revenues for fiscal year 2026-2027 to implement the audit schedule, procure consulting expertise, and acquire data analytic tools