STAND. COM. REP. NO. 3511

Honolulu, Hawaii

RE:    S.C.R. No. 124

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.C.R. No. 124, S.D. 1, entitled:

"SENATE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A FINANCIAL AND MANAGEMENT AUDIT OF THE DEPARTMENT OF HUMAN SERVICES MEDICAID-SPONSORED PROGRAMS,"

begs leave to report as follows:

     The purpose of this measure is to request the Auditor to conduct a financial and management audit of the Department of Human Services' Medicaid-sponsored programs, with a particular emphasis on the QUEST, QUEST-Net, QUEST-ACE, and QUEST Expanded Access programs.

     Testimony in support of the measure was submitted by the Waianae Coast Comprehensive Health Center, the Kalihi-Palama Health Center, the Hawaii Primary Care Association, AlohaCare, and Papa Ola Lokahi.  The Department of Human Services submitted comments.

     Your Committee finds that more than 200,000 individuals were enrolled in state Medicaid programs in 2007 and that the programs' continued financial viability is vital to ensuring continued access to needed medical, mental health, and dental services for our community's most vulnerable population.  Your Committee further finds that a financial and management audit would provide the appropriate oversight, evaluation, and feedback regarding the State's Med-Quest Division, which administers all Medicaid-sponsored programs.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 124, S.D. 1, and recommends its adoption.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

ROSALYN H. BAKER, Chair