Legislative Audit Bureau
April 14, 2004
The Honorable, The Legislature:
S759
At the request of the Department of Health and Family Services (DHFS), we have completed a financial audit of the Health Insurance Risk-Sharing Plan (HIRSP) for fiscal year (FY) 2002-03. HIRSP provides medical and prescription drug insurance for more that 17,000 policyholders who are unable to obtain coverage in the private market or who lost employer-sponsored group health insurance. We have provided an unqualified opinion of HIRSP's financial statements.
HIRSP's financial position continues to improve: its accounting deficit was $0.9 million on June 30, 2003, compared to $6.0 million on June 30, 2002. In addition, a balance in the excess policyholder premium account increased significantly during FY 2002-03, from $3.0 million to $10.4 million as of June 30, 2003. By statute, the excess premium balance can be used only for purposes that benefit policyholders, such as for reducing premium levels to a statutory floor of 140 percent of standard risk rates.
Despite an improving financial position, HIRSP faces continuing management and funding challenges because of increasing enrollment and claims costs. In FY 2002-03, enrollment increased 16.9 percent and claims costs increased 27.8 percent. In addition, general purpose revenue (GPR) support was eliminated beginning in FY 2003-04. Costs previously covered by GPR, which totaled $10.2 million in FY 2002-03, are now covered by policyholders, insurers, and health care providers. Further, legislative action will be needed to address a technical issue that DHFS and HIRSP's contracted actuary have identified in HIRSP's statutory funding formula.
During our prior audit, we recommended DHFS increase its oversight of prescription drug claims, which totaled $32.4 million in FY 2002-03, through independent audits of the pharmacy benefit management company's controls. DHFS is currently conducting a competitive procurement process to select the plan administrator that will be administering HIRSP beginning in January 2005, and it has included a requirement for such audits in the Request for Vendor Proposals that will be used to award a new contract.
We appreciate the courtesy and cooperation extended to us by DHFS and the plan administrator for HIRSP. A response from DHFS follows the appendix.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Ethics Board
April 13, 2004
The Honorable, The Senate:
The following lobbyists have been authorized to act on behalf of the organizations set opposite their names.
For more detailed information about these lobbyists and organizations and a complete list of organizations and people authorized to lobby the 2003 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us
Handrick, Joey Wisconsin Occupational Therapy Association
Jentz, Robert Air Wisconsin Airlines Corporation
Jentz, Robert Arjo Wiggins Appleton Limited
Kuehn, Ronald W Arjo Wiggins Appleton Limited
La Follette, Bronson Value Generics Rx
Lamb, Jordan Air Wisconsin Airlines Corporation
Peshek, Peter Arjo Wiggins Appleton Limited
Peterson, Craig Arjo Wiggins Appleton Limited
Also available from the Wisconsin Ethics Board are reports identifying the amount and value of time state agencies have spent to affect legislative action and reports of expenditures for lobbying activities filed by organizations that employ lobbyists.
Sincerely,
R. Roth Judd
Director
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State of Wisconsin
Office of the Governor
April 5, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Bablitch, Steve,
of Whitefish Bay, as a member of the State of Wisconsin Investment Board, to serve for the term ending May 1, 2005.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Agriculture, Financial Institutions and Insurance.
State of Wisconsin
Office of the Governor
April 13, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Braam
, Quirin E.,
of New Berlin, as a member of the Credit Union Review Board, to serve for the term ending May 1, 2007.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Agriculture, Financial Institutions and Insurance.
State of Wisconsin
Office of the Governor
April 13, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Cupp
, Mark,
of Muscoda, as a member of the Land and Water Conservation Board, to serve for the term ending May 1, 2008.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Environment and Natural Resources.
Office of the Governor
April 13, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Stower
, Harvey,
of Amery, as a member of the Land and Water Conservation Board, to serve for the term ending May 1, 2008.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Environment and Natural Resources.
State of Wisconsin
Office of the Governor
March 25, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Williams, Jay,
of Mequon, as Chair of the Wisconsin Professional Baseball Park District Board, to serve for the term ending July 1, 2007.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Economic Development, Job Creation and Housing.
State of Wisconsin
Office of the Governor
April 2, 2004
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Womack
, Rolen,
of Brown Deer, as a member of the Bradley Center Sports and Entertainment Corporation, to serve for the term ending July 1, 2006.
Sincerely,
JIM DOYLE
Governor
Read and referred to committee on Economic Development, Job Creation and Housing.
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Relating to purses paid to greyhound owners who are residents of the State of Wisconsin.
