GOVERNOR VETOES BILL THAT WOULD DISRUPT CARE FOR MEDICAID CLIENTS, WEAKEN OVERSIGHT OF HEALTH PLANS

News Release from Office of the Governor

HONOLULU – Governor Lingle vetoed a bill today that would disrupt medical care for needy adults and children who receive free health insurance through the QUEST Medicaid program. This legislation would also prevent the State from making the best possible financial deal with QUEST health plans and diminish the State’s ability to increase oversight of these plans.

Under HB 2085 HD1 SD2, the Lingle-Aiona Administration, through the State Department of Human Services (DHS), would be prohibited from soliciting proposals for new QUEST contracts exceeding $100 million.  These contracts could only be put out to bid by the new DHS administration, which will not be in place until December 2010 at the earliest.

The bill does not achieve its stated goal which is to “ensure continuity of care for Hawai‘i’s neediest population.”  Instead, it will disrupt care for Medicaid clients. 

“Due to the complexity and length of time it takes to award contracts for our Medicaid managed care programs, DHS must begin the process no later than this fall,” Governor Lingle said.

The current QUEST contracts with AlohaCare, HMSA and Kaiser will expire on June 30, 2011.

“Forcing DHS to award contracts under a compressed timeline would negatively impact health care for the nearly 200,000 needy individuals who receive Medicaid coverage through QUEST,” Governor Lingle said. “And extending the current contracts without competition would prevent the State from getting the best possible deal from participating health plans. “

This special-interest legislation would also weaken the ability of DHS to oversee QUEST health plans to make sure they deliver quality care to clients at a fair price for taxpayers.

The Governor’s message to the Legislature detailing her objections to this bill and her reasons for vetoing it is >>> HERE.

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