Straus: Audit reveals need for stronger oversight at state agency

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By Ed Sterling

AUSTIN — House Speaker Joe Straus on Jan. 31 said a new state audit raises questions about the management of the state Health and Human Services Commission and illustrates the need for legislative hearings.

A report released last week by the State Auditor’s Office found that HHSC allowed Superior Health Plan Inc. to report approximately $29.6 million in bonus and incentive payments paid to affiliates’ employees, even though those payments were not allowed under the state’s contract with Superior. The state agency also approved Superior’s request to report affiliate profits as costs without following the approval process contained in the state’s contract with Superior.

“This audit highlights serious weaknesses in HHSC’s oversight of its own contracts. Taxpayers have a right to expect that the Commission will hold providers to contract requirements. Unfortunately, this isn’t the first example of HHSC failing to properly enforce requirements in taxpayer-funded contracts. This audit shows that there is a lot of room for improvement at HHSC,” Straus said.


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