[§103F-107]  Medicaid contracts; nonprofitsand for-profits; reporting requirements.  (a)  All nonprofit or for-profitmedicaid healthcare insurance contractors, within one hundred and eighty daysfollowing the close of each fiscal year, shall submit an annual report to thedepartment of human services, the insurance division of the department ofcommerce and consumer affairs, and the legislature.  The report shall beattested to by a plan executive located within the State and shall be madeaccessible to the public.

The report shall be based on contractsadministered in the State and shall include:

(1)  An accounting of expenditures of MedQuestcontract payments for the contracted services, including the percentage ofpayments:

(A)  For medical services;

(B)  For administrative costs;

(C)  Held in reserve; and

(D)  Paid to shareholders;

(2)  Employment information including:

(A)  Total number of full-time employees hiredfor the contracted services;

(B)  Total number of employees located in the Stateand the category of work performed; and

(C)  The compensation provided to each of thefive highest paid Hawaii employees and to each of the five highest paidemployees nationwide, and a description of each position;

(3)  Descriptions of any on-going state or federalsanction proceedings, prohibitions, restrictions, on-going civil or criminalinvestigations, and descriptions of past sanctions or resolved civil orcriminal cases, within the past five years and related to the provision ofmedicare or medicaid services by the contracting entity, to the extent allowedby law;

(4)  Descriptions of contributions to the community,including the percentage of revenue devoted to Hawaii community developmentprojects and health enhancements; provided that contracted services shall notbe included in the percentage calculation; and

(5)  A list of any management and administrativeservice contracts for MedQuest services made in Hawaii and outside of the State,including a description of the purpose and cost of those contracts.

(b)  The department of human services shallinclude in all medicaid healthcare insurance plan contracts, the annualreporting requirements of subsection (a).

(c)  Any contract under this section shall begoverned by the laws of the State of Hawaii.

(d)  Within ninety days of receipt of thereports required by this section, the department of human services shallprovide a written analysis and comparative report to the legislature. [L Sp2009, c 12, §2]