STAND. COM. REP. NO. 1638

Honolulu, Hawaii

RE:    H.C.R. No. 184

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committees on Human Services and Ways and Means, to which was referred H.C.R. No. 184 entitled:

"HOUSE CONCURRENT RESOLUTION REQUESTING THE AUDITOR TO CONDUCT A COMPREHENSIVE FINANCIAL AUDIT OF THE DEPARTMENT OF HUMAN SERVICES MED-QUEST DIVISION, WITH EMPHASIS ON THE MEDICAID PROGRAM,"

beg leave to report as follows:

     The purpose and intent of this measure is to request the Auditor to conduct a comprehensive financial audit of the Department of Human Services Med-QUEST division, with emphasis on the Medicaid Program.

     Your Committees received comments on this measure from the Department of Human Services.

     Your Committees find that Medicaid is the most costly program within the Department of Human Services, currently covering the healthcare needs of twenty-three percent of Hawaii's residents, which translates to approximately one in four individuals.  Medicaid cost management and savings processes should accompany requests for increased budget requests; however, a lack of management processes, accurate systems of accounting, and internal controls have put Medicaid on an unsustainable track.  A current audit of the Med-QUEST Division's financial processes is needed in light of the projected growth and expansive budget requests for the Medicaid Program.

     As affirmed by the records of votes of the members of your Committees on Human Services and Ways and Means that are attached to this report, your Committees concur with the intent and purpose of H.C.R. No. 184, and recommend its adoption.

Respectfully submitted on behalf of the members of the Committees on Human Services and Ways and Means,

____________________________ DAVID Y. IGE, Chair

____________________________ SUZANNE CHUN OAKLAND, Chair