45th legislature - STATE OF NEW MEXICO - second session, 2002

FOR THE LEGISLATIVE HEALTH SUBCOMMITTEE

A JOINT MEMORIAL

REQUESTING THAT THE HUMAN SERVICES DEPARTMENT DEVELOP AUDITS OF ACTUAL PERFORMANCE UNDER EXISTING CONTRACT STANDARDS FOR HEALTH CARE PROGRAMS.

WHEREAS, the medicaid program and the state children's health insurance program comprise one of the largest state expenditures, accounting for almost nine percent of the state's general fund and almost nineteen percent of the state's operating budget; and

WHEREAS, various interim and statutory legislative committees have expressed concerns about financial accounting and performance standards in the administration of medicaid and the state children's health insurance program; and

WHEREAS, recent audits by the legislative finance committee have identified various areas for improvement in the cost-effectiveness of medicaid and state children's health insurance program and in monitoring of contractor performance; and

WHEREAS, medicaid managed care organizations and other contractors for health care services are required to report vast amounts of data to the human services department; and

WHEREAS, strong oversight of providers and contractors and thorough analyses of reported information are necessary to ensure fiscal accountability and compliance with performance standards; and

WHEREAS, since 1997, the consumer price index has slowed to one and nine-tenths percent while health care inflation has steadily increased to a current level of four and eight-tenths percent, demonstrating a need for increased monitoring of state health care expenditures and performance;

NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the human services department be requested to develop audits of actual performance and health care expenditures and remedies to correct discrepancies and noncompliance under existing contract standards to ensure fiscal and performance accountability; and

BE IT FURTHER RESOLVED that the human services department provide its findings and recommendations to the legislative health subcommittee or other appropriate interim committee by October 1, 2002; and

BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the human services department.