Sunday 8 May 2011

Neb. State Auditor Slams Health Insurance Plan

Neb. State Auditor Slams Health Insurance Plan
Recently published review of public health insurance plan in Nebraska state troopers and other police officers to see the program is a "fiscal disaster" that has been dissipated and the lack of control, the state auditor Mike Foley said on Tuesday.

The 10-month audit was conducted in the health plan administered by the State Law Enforcement Council negotiations, which says it represents about 500 employees from the application of Nebraska law. Foley said he was motivated by "extremely high" cost of health care in the state of Nebraska, compared with other states.

Foley report details the extensive bad, including the use of $ 1,200,000 of public funds to pay health costs for workers 'buying land and constructing a building, the soldiers of the' Association of the State of Nebraska.

About $ 57,000 of the money went to buy furniture, artwork, flat screen televisions and other items for the construction, the report said. Foley said the auditors could find little or no documentation of an additional $ 60 billion has been spent.

The report shows that since 2002, SLEBC received approximately $ 5,000,000 a year, state funding and contributions of employees, even though it has never been certified bargaining units, and has never authorized, or the use of funds public.

"There was so much public money is spent so quickly with so little control, or documentation, it is difficult to know who bought what has accepted all this, where everyone is a commodity," Foley said at a news conference. "It's just been an absolute train wreck period, and a terrible embarrassment for the State of Nebraska."

SLEBC members include troops Nebraska, and some law enforcement agencies of the State Fire Marshal's Office and the Nebraska game and Parks Commission. SLEBC a representative was not immediately respond to a telephone message seeking comment.

Foley said the audit found mismanagement, which began when SLEBC successfully negotiated the ability to launch its own health insurance plan separate from the state in 2002. state money sent to the group's bank account every month without supervision, "he said.

Someone in state government "has given them access to state funds, so that funds are spent on the books of state, overseeing the auditor's office for the supervision of the office of treasurer, and so on," Foley said. "The money was simply sent each month to the bargaining unit to manage their own health system."

Foley said that nobody in the government of Nebraska, has accepted responsibility for that decision.

SLEBC said set their premiums higher than necessary to generate extra cash and $ 1.2 million to build the brick building with a floor of offices at Lincoln, opposite the Lancaster County jail.

construction of 7,200 square meters was obviously designed for income from rent, Foley said. But in the last year and a half, he said, he sat mostly empty, and only had about $ 300. The building continues to sell "fire sale price" of $ 850,000, he said.

Foley said the leaders SLEBC apparently wanted to use the money to finance its operations, but are not allowed to invest in real estate. He said the State, therefore, has lost hundreds of thousands of dollars.

"I went away on its own, without consulting anyone, and has just done this," said Foley. "Apparently, it was a terrible investment."

Foley declined to say whether the audit could lead to criminal charges, but said he expected a legal battle involving the State.

The audit also found $ 1,800,000 medical claims paid during the year, no specific explanation of services. About 1.1 million U.S. dollars in credits marked "various hospital," said Foley. Other claims are able to pay for services that would be for private insurers, or patients who would otherwise have been entitled.

Foley said some of his efforts to control information on civil servants obstruction. He said the governor's office denied him the medical records, in some cases, the argument that their release would violate the privacy of a doctor.

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