2020 -- S 2370

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LC003279

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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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, Euer, Cano, Quezada, and Ciccone

     Date Introduced: February 13, 2020

     Referred To: Senate Health & Human Services

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     WHEREAS, Approximately one in five Rhode Islanders receives benefits through Rhode

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Island's Medicaid programs, including 3 in 5 nursing home residents, 3 in 5 individuals with

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disabilities, and 4 in 9 Medicare beneficiaries; and

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

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reimbursing health care providers directly; and

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

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

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

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

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

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companies; and

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

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

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2017, due to opposition from such companies; and

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

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

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

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

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

 

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

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

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lowest Medicaid cost increases in the country; and

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

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

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such analyses; now, therefore be it

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

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

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

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

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

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

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Auditor General to report its findings to the Rhode Island Senate on or before January 2, 2021;

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and be it further

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

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

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LC003279

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