State of Wisconsin
April 26, 1999
The Honorable, The Senate:
This is to request that my name be withdrawn as a cosponsor of Senate Bill 121.
Sincerely,
Rob Kreibich
State Representative
93rd Assembly District
State of Wisconsin
Legislative Audit Bureau
April 26, 1999
The Honorable, The Legislature:
At the request of the Department of Health and Family Services (DHFS), we have performed a financial audit of the Health Insurance Risk-Sharing Plan (HIRSP) for fiscal year (FY) 1997-98. HIRSP provides medical insurance for individuals unable to obtain private coverage. During our audit period,
1997 Wisconsin Act 27 transferred oversight responsibility for HIRSP from the Office of the Commissioner of Insurance to DHFS, modified the plan in response to new federal requirements, and required responsibility for its daily operations to be transferred to the State's fiscal agent for Medicaid. Act 27 also made significant changes to plan funding, including providing $17.9 million in general purpose revenue for the 1997-99 biennium and increasing health care providers' responsibility for HIRSP funding.
DHFS had less than three months to prepare for its new program oversight responsibility, and implementation of funding and other program changes has been more complex than expected. As a result, ensuring that HIRSP is funded in accordance with statutory provisions has been difficult; efforts to implement Medicaid cost-containment and reimbursement practices are resulting in operational and administrative problems; and higher-than-anticipated plan administration costs are being incurred. We qualify our opinion for the FY 1997-98 financial statements because DHFS cannot accurately determine and disclose health care providers' actual contributions to HIRSP.
DHFS is taking steps to address these concerns, including proposing significant changes to HIRSP as part of the 1999-2001 biennial budget. These changes would clarify plan operations and facilitate Medicaid cost-containment efforts. As it considers this proposal or any other proposed changes to HIRSP, the Legislature may also wish to require that DHFS take steps to improve financial management of HIRSP by funding it on the same basis used for financial reporting, monitoring claim liabilities, and improving cash management.
We appreciate the courtesy and cooperation extended to us by DHFS staff and the plan administrators. The response from DHFS is the appendix.
Sincerely,
Janice Mueller
State Auditor
__________________
Relating to the procedure and practice for fair hearings regarding the food stamp and medicaid programs.
Submitted by Division of Hearings and Appeals.
Report received from Agency, April 22, 1999.
Referred to committee on Human Services and Aging, April 28, 1999
.
Relating to operation of the health insurance risk-sharing plan (HIRSP).
Submitted by Department of Health and Family Services.
Report received from Agency, April 27, 1999.
Referred to committee on Health, Utilities, Veterans and Military Affairs, April 28, 1999
.
Relating to inventory reporting for petroleum marketing facilities.
Submitted by Department of Military Affairs.
Report received from Agency, April 21, 1999.
Referred to committee on Agriculture, Environmental Resources and Campaign Finance Reform, April 28, 1999
.
Relating to neonatal intensive care unit training grants.
Submitted by Department of Health and Family Services.
Report received from Agency, April 27, 1999.
Referred to committee on Health, Utilities, Veterans and Military Affairs, April 28, 1999
.
Relating to standards for the inspection of bridges in Wisconsin.
Submitted by Department of Transportation.
Report received from Agency, April 26, 1999.
Referred to committee on Insurance, Tourism, Transportation and Corrections, April 28, 1999
.
Relating to allowing the operation of double bottoms and certain other vehicles on certain specified highways.
Submitted by Department of Transportation.
Report received from Agency, April 22, 1999.
Referred to committee on Insurance, Tourism, Transportation and Corrections, April 28, 1999
.
__________________
The committee on Health, Utilities, Veterans and Military Affairs reports and recommends:
Relating to the cancellation of indebtedness under the economic assistance, veterans trust fund stabilization and personal and secondary loan programs.
No action taken.
Relating to requirements for joint local water authorities.
No action taken.
Relating to the release of information to a collection agency under contract with the state to collect delinquent department loans.
No action taken.
Relating to requirements for examination and licensure of psychologists, renewal and conduct.
No action taken.
Rodney Moen
Chairperson
__________________
Senate Bill 123
Relating to: the fair hearing process under Wisconsin works.
Withdrawn from the committee on
Labor and referred to the committee on
Human Services and Aging pursuant to Senate Rule
46 (2)(c).
__________________
Chief Clerk's Report
The Chief Clerk records:
Senate Bill 83
Presented to the Governor on April 22, 1999.