THE VULTURES FEEDING
ON SENIOR CITIZENS
Sightings from The Catbird Seat
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April 26, 2008
Medicaid deals opposed
By Greg Wiles, Honolulu Advertiser Staff Writer
The heads of seven Hawai'i community health centers are urging Gov. Lingle to rescind an estimated $1.5 billion in Medicaid contracts to two for-profit Mainland companies.
The board presidents from the centers wrote to Lingle last week saying they had serious concerns over the state Department of Human Services' award of the Quest Expanded Access Medicaid contracts for more than 37,000 aged, blind and disabled people. They raised a number of issues similar to those voiced by AlohaCare, a Honolulu-based nonprofit health plan that lost out in the selection process.
The state Department of Human Services awarded the contracts to the lowest bidders in February, giving part of the work to Wellcare Health Plans Inc. of Tampa, Fla., and the remainder to UnitedHealth Group Inc.
"We're just scared overall that it's going to affect the healthcare industry in Hawai'i," said Elizabeth Fien, board president of the Waimanalo Community Health Center. She said as far as she knew Wellcare and UnitedHealth had yet to contract with any service providers here. That could disrupt patient treatment.
State Department of Human Services director Lillian Koller issued a statement saying it would be inappropriate to comment in detail on the situation, since the state's Procurement Office is considering AlohaCare's appeal of the awards. She also noted that the concerns were being raised by a group with ties to the insurer.
"It is important to note that the seven health centers who sent this letter ... are among the 13 health centers who own AlohaCare," Koller said in a statement.
She said that AlohaCare filed a protest to the award on Feb. 8, and that is "still pending decision" by the state's chief procurement officer.
AlohaCare said that community health centers were its founders and that some of the centers still have representatives on its board. But as a nonprofit, it said, it does not have owners.
AlohaCare raised several concerns. Earlier this year, UnitedHealth units were accused by state authorities of claims processing failures in California and fraudulent rate-setting in New York. UnitedHealth is the largest U.S. health insurer.
Wellcare's chief executive officer resigned earlier this year and it is under investigation by the FBI and Florida officials for possible government overpayments.
AlohaCare also alleged the DHS is allowing the for-profit companies to skip paying the state's 4.265 percent premium tax, something that could amount to tens of millions of lost tax revenue.
Ed Kemper, an attorney representing AlohaCare, said that depending on the ruling, AlohaCare could seek further reviews of the contract, including going to court.
Fien and board presidents from six other community health centers on O'ahu and the Big Island also said they are worried that UnitedHealth and WellCare may transfer some work done in Hawai'i to the Mainland.
Reach Greg Wiles at gwiles@honoluluadvertiser.com.
www.kycbs.net/Medicaid-Deals-Opposed-4-26-8.mht
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Also see: http://starbulletin.com/2003/05/20/business/index1.html
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December 6, 2003
Lingle off to D.C. to discuss
long-term care
By Bruce Dunford, Associated Press
Gov. Linda Lingle planned to leave tonight for Washington, D.C., where she has a busy schedule of meetings next week with federal officials and several Republican senators and will participate in a National Governors Association conference on long-term care.
Lingle said she will also take time for a campaign fund-raiser on the East Coast.
Lingle said she will meet with U.S. Department of Homeland Security Secretary Tom Ridge, whom she is encouraging to open a Pacific regional office for his agency in Hawaii and to help get a special "Hawaii-only" exemption to new stricter U.S. visa requirements for business travelers and students.
She will meet with White House officials, U.S. Department of Agriculture staff and several Republican senators she hopes to convince to support legislation leading to federal recognition of native Hawaiians.
Lingle said she will be attending the governors association's long-term care panel and chairing a special subcommittee on community-based long-term care.
Going with her will be Lillian Koller, director of the state Department of Human Services, and Dr. Chiyome Fukino, director of the state Department of Health, who will serve as staff for the subcommittee's work.
"This is a year-long effort by the NGA," she said while discussing her trip earlier this week.
"(Idaho Gov.) Dirk Kempthorne, our National Governors Association president, has made this his top priority ... which fits very well with the issue that we're trying to deal with here at home," Lingle said.
The conference will include a roundtable discussion on long-term care that will be broadcast nationally, she said.
Lingle said the fund-raiser will be in New Jersey.
"Wherever I travel there are groups who are interested in a Republican woman Jewish governor from Hawaii, either because they are a woman's group, a Jewish group or a Republican group," she said.
The governor will return to Hawaii on Friday, her office said.
http://starbulletin.com/2003/12/06/news/story11.html
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Originally posted April 26, 2008
Last updated April 27, 2008, by The Catbird