2019 -- S 0584

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LC001569

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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S E N A T E   R E S O L U T I O N

RESPECTFULLY REQUESTING THE RHODE ISLAND STATE AUDITOR GENERAL TO

CONDUCT OR OVERSEE A STUDY OR AUDIT ON THE PRIVATIZATION OF RHODE

ISLAND'S MEDICAID PROGRAMS

     Introduced By: Senators Bell, Nesselbush, Euer, Murray, and Valverde

     Date Introduced: March 14, 2019

     Referred To: Senate Health & Human Services

     WHEREAS, Approximately one in three Rhode Islanders (about 330,000 people)

receives benefits through Rhode Island's Medicaid programs, including 3 in 5 nursing home

residents, 3 in 5 individuals with disabilities, and 1 in 5 Medicare beneficiaries; and

     WHEREAS, Prior to 1994, Rhode Island managed its own Medicaid programs

reimbursing health care providers directly; and

     WHEREAS, Since 1994, Rhode Island has privatized an ever-growing portion of its

Medicaid program so that by 2018, 60 percent of the entire Medicaid budget (about $1.7 billion)

went to private health insurance companies to manage Rhode Island’s Medicaid programs; and

     WHEREAS, In annual reports since 2009, the Rhode Island Office of the Auditor

General repeatedly found that the state lacks adequate oversight of such private health insurance

companies; and

     WHEREAS, The Auditor General found that Rhode Island overpaid more than $200

million to private health insurance companies in 2015 and could not recoup overpayments until

2017, due to opposition from such companies; and

     WHEREAS, Academic peer-reviewed research has found that privatizing management of

Medicaid does not save states money and often costs them more; and

     WHEREAS, In 2009, Connecticut conducted an audit which found that it was overpaying

private health insurance companies (United Healthcare Group, Aetna, and Community Health

Network of Connecticut) nearly $50,000,000 of Medicaid funds per year; and

     WHEREAS, In 2010, Connecticut abandoned its attempt to privatize management of its

Medicaid program and subsequently saved hundreds of millions of dollars and achieved the

lowest Medicaid cost increases in the country; and

     WHEREAS, Rhode Island has not conducted analyses of the actual costs and benefits of

contracting with private health insurance companies nor collected data sufficient to undertake

such analyses; now, therefore be it

     RESOLVED, That this Senate of the State of Rhode Island and Providence Plantations

hereby respectfully requests the Rhode Island State Auditor General to conduct or oversee a study

or audit similar to the one undertaken by the Connecticut Comptroller in 2009 to determine

whether Rhode Island is overpaying private health insurance companies and whether reversing

the privatization of Rhode Island’s Medicaid programs can save the state money; and be it further

     RESOLVED, That this Senate hereby respectfully requests the Rhode Island State

Auditor General to report its findings to the Rhode Island Senate on or before January 2, 2020;

and be it further

     RESOLVED, That the Secretary of State be and hereby is authorized and directed to

transmit a duly certified copy of this resolution to the Rhode Island State Auditor General.

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LC001569

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