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HF 3147

as introduced - 88th Legislature (2013 - 2014) Posted on 03/17/2014 02:19pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/17/2014

Current Version - as introduced

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A bill for an act
relating to human services; modifying audit requirements for managed care
plans and county-based purchasing plans under the prepaid medical assistance
program; amending Minnesota Statutes 2012, section 256B.69, subdivision 9d.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 256B.69, subdivision 9d, is amended to
read:


Subd. 9d.

deleted text begin Financial auditdeleted text end new text begin Auditsnew text end .

(a) The legislative auditor shall deleted text begin contract
with an audit firm to conduct a biennial independent third-party financial audit of
deleted text end new text begin , as
resources permit, audit
new text end the information required to be provided by managed care plans
and county-based purchasing plans under subdivision 9c, paragraph (b). The deleted text begin auditdeleted text end new text begin audits
new text end shall be conducted in accordance with generally accepted government auditing standards
issued by the United States Government Accountability Office. deleted text begin The contract with the
audit firm shall be designed and administered so as to render the independent third-party
audit eligible for a federal subsidy, if available. The contract shall require the audit to
deleted text end new text begin The
audits may also
new text end include a deleted text begin determinationdeleted text end new text begin reviewnew text end of compliance with the federal Medicaid
rate certification processdeleted text begin . The contract shall require the audit to determine ifdeleted text end new text begin and whether
new text end the administrative expenses and investment income reported by the managed care plans
and county-based purchasing plans are compliant with state and federal law.

deleted text begin (b) For purposes of this subdivision, "independent third party" means an audit firm
that is independent in accordance with government auditing standards issued by the United
States Government Accountability Office and licensed in accordance with chapter 326A.
An audit firm under contract to provide services in accordance with this subdivision must
not have provided services to a managed care plan or county-based purchasing plan during
the period for which the audit is being conducted.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end The commissioner shall require, in the request for bids and resulting contracts
with managed care plans and county-based purchasing plans under this section and section
256B.692, that each managed care plan and county-based purchasing plan submit to and
fully cooperate with the deleted text begin independent third-party financial auditdeleted text end new text begin audits under paragraph
(a)
new text end of the information required under subdivision 9c, paragraph (b). Each contract with a
managed care plan or county-based purchasing plan under this section or section 256B.692
must provide the commissioner and the deleted text begin audit firm contracting with thedeleted text end legislative auditor
access to all data required to complete the deleted text begin auditdeleted text end new text begin auditsnew text end . deleted text begin For purposes of this subdivision,
the contracting audit firm shall have the same investigative power as the legislative auditor
under section 3.978, subdivision 2.
deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end Each managed care plan and county-based purchasing plan providing services
under this section shall provide to the commissioner biweekly encounter data and claims
data for state public health care programs and shall participate in a quality assurance
program that verifies the timeliness, completeness, accuracy, and consistency of the data
provided. The commissioner shall develop written protocols for the quality assurance
program and shall make the protocols publicly available. The commissioner shall contract
for an independent third-party audit to evaluate the quality assurance protocols as to
the capacity of the protocols to ensure complete and accurate data and to evaluate the
commissioner's implementation of the protocols. The audit firm under contract to provide
this evaluation must deleted text begin meet the requirements in paragraph (b)deleted text end new text begin be independent in accordance
with generally accepted government auditing standards issued by the United States
Government Accountability Office
new text end .

deleted text begin (e)deleted text end new text begin (d)new text end Upon completion of deleted text begin thedeleted text end new text begin annew text end audit under paragraph (a) deleted text begin and receipt by the
legislative auditor
deleted text end , the legislative auditor shall provide copies of the audit report to the
commissioner, the state auditor, the attorney general, and the chairs and ranking minority
members of the health and human services finance committees of the legislature. Upon
completion of the evaluation under paragraph deleted text begin (d)deleted text end new text begin (c)new text end , the commissioner shall provide
copies of the report to the legislative auditor and the chairs and ranking minority members
of the health finance committees of the legislature.

deleted text begin (f)deleted text end new text begin (e)new text end Any actuary under contract with the commissioner to provide actuarial
services must meet the independence requirements under the professional code for fellows
in the Society of Actuaries and must not have provided actuarial services to a managed
care plan or county-based purchasing plan that is under contract with the commissioner
pursuant to this section and section 256B.692 during the period in which the actuarial
services are being provided. An actuary or actuarial firm meeting the requirements
of this paragraph must certify and attest to the rates paid to the managed care plans
and county-based purchasing plans under this section and section 256B.692, and the
certification and attestation must be auditable.

deleted text begin (g)deleted text end new text begin (f)new text end Nothing in this subdivision shall allow the release of information that is
nonpublic data pursuant to section 13.02.