Report Title:

Medicaid; Procurement; Health and Human Services

Description:

Requires the department of human services to award medicaid contracts to nonprofit insurance entities only. (HB1525 HD1)

HOUSE OF REPRESENTATIVES	H.B. NO.	1525
TWENTY-FIFTH LEGISLATURE, 2009		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

RELATING TO MEDICAID.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Recently, the state department of human services contracted for the administration of a new managed care program, QUEST Expanded Access, for the aged, blind, and disabled population.  Of the awarded contracts, only two went to for-profit insurance companies to provide medicaid coverage for Hawaii's 37,000 aged, blind, and disabled residents.  Several states have found a number of serious law violations and instances of Medicaid fraud in administering similar medicaid programs through for-profit insurance companies.  As a result, legislation has surfaced throughout the United States that permits only nonprofit and government‑related entities to bid on medicaid contracts.

     The purpose of this Act is to require all future medicaid procurement contracts to be awarded only to qualified nonprofit entities.

     SECTION 2.  Chapter 103F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§103F-   Procurement of medicaid contracts; nonprofits. The department of human services shall solicit proposals for the procurement of all medicaid contracts in the State solely from nonprofit insurance entities and award contracts solely to those entities."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2050.