State audits of insurance plans find some issues

  • Article by: JACKIE CROSBY , Star Tribune
  • Updated: December 6, 2012 - 9:04 PM

Taxpayer-supported health plans' management, though, was found to be "generally sound."

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itsmyboatDec. 6, 12 9:40 PM

Let's see. U-Care is a non-profit whose entire book of business consists of spending public funds to provide Medicaid services to the poor, the elderly, etc. It has been making excess profits? Why is it making any profit at all, if it is a non-profit and all it is doing is serving as a pass-through for public money? And, since everything it pays out is guaranteed by the taxpayer it operates with zero risk so why does it need reserves beyond a minimum float? What U-Care in fact is, is a nothing but a scheme to defraud at the expense of the state and federal taxpayer, and to the detriment of those it purports to serve. The core of the problem is that there is no daylight between the management of these companies and Cindy Jesson who is supposed to be the lead in their oversight. What we are looking at is likely a way-too-cozy relationship, It sure looks like fraud. Dayton needs to wake up and dump Jesson.

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comment229Dec. 7, 12 5:00 AM

tsmyboat: further, every time I hear a company is "non profit" a red flag goes up. Non profit can be achieved, especially if there are apathetic board members, by giving the top echelon huge salaries and bonuses. Yes, it's non profit all right. The books at the end of their fiscal year say zero, but that does not mean the funds were spent well. Non profit is one of those half truth phrases and always will be unless there is an oversight committee and a watchdog group. Now, tell me where most non profits operate? And finally, my apologies to the non profits out there that are doing a great job with reasonable salaries.

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sek2undrstndDec. 7, 12 8:04 AM

Do any of these health insurance companies participate in the repo (repurchase) market? If so, further scrutiny of their financial statements is needed.

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formergopDec. 7, 12 8:36 AM

Why is the taxpayer being billed for lobbying?

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biggusdoggusDec. 7, 12 8:38 AM

"As a result of a "mathematical error," UCare paid an additional $1.57 million to the state to comply with an agreement made by all the plans to cap their 2011 profits at 1 percent." So what does the state do with the $1.67M and how is this not some sort of a shakedown?

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knoxavDec. 7, 12 8:46 AM

The buzzwords like "nonprofit", "Service", Assistance to the Poor", are always heavily salted into articles about healthcare. It is decievingly meant to convey noble intent. Just call it "governmentese". In the case of United Healthcare aka "Medica" aka UCare", look up the executive compensation in the financial reports or even at the Star Tribune. You will be - or should be - STUNNED! Just keep quiet and keep paying those premiums, co-pays, deductibles and coinsurances.

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EleanoreDec. 7, 12 9:25 AM

It it any wonder that insurance companies, programs, and pretty much everything associated with them are dropping in public esteem below legislators and used car salesmen? Insurance seems to have become more of a banking function in society, one with a profit despite it's claim of non-profit status in some instances. I'd suggest some serious changes in this area of commerce to protect the citiznery from profiteers.

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a1892562Dec. 7, 12 9:37 AM

Can anyone give me a link to the actual reports? I'd like to read through them.

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jcinmnDec. 7, 1210:33 AM

itsmyboat "Let's see. U-Care is a non-profit whose entire book of business consists of spending public funds to provide Medicaid services to the poor, the elderly, etc. It has been making excess profits? Why is it making any profit at all, if it is a non-profit and all it is doing is serving as a pass-through for public money? " That's a good question. U-Care is provided by United Health Care which is a for profit company based in a state that requires health insurance companies to be non-profit. I think that, because Minnesota law allows non-profits to have a 10% margin above cost, UHC takes advantage of this to get a "profit"

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tebazileDec. 8, 12 9:17 AM

I find it very concerning that BCBS is spending public money on lobbying. That is illegal. I also find it very concerning that UCare somehow 'did the math wrong' and didn't report all of its earnings to the State. 1.5 million dollars is just a little mistake, just a slip of a pen? It is also important to remember that this was not a 'real'audit. It was just reviewing the information already given to the state by the companies. What we NEED is a real audit.

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