In his Executive Order 2011-6, Fitial said the Commonwealth Healthcare Corp. “shall relinquish responsibility of administering Medicaid to the office of the governor.”
All records relating to the Medicaid and all the personnel involved in the job are to be transferred to the governor’s office. The unspent funds are transferred as well, and any portion of the money that is not transferred “may be reprogrammed by the governor,” the executive order said.
However, the order added, “there shall be regular communication” between the governor and the healthcare corp. chief executive officer.
Former Gov. Juan N. Babauta is the corporation’s CEO.
This communication and cooperation, Fitial said, “shall extend beyond the transfer with the ultimate goal of optimal efficiency in the operations of the Medicaid office.”
The order said the Medicaid under the corporation creates a potential conflict of interest. The Medicaid office is the designated payer of Medicaid funds and as such it has a duty to make payments to all eligible payees.
CHC is an eligible payee of Medicaid funds, Fitial said.
Having the Medicaid office subordinate to CHC risks favoritism in payment to CHC over other eligible payees.
Such a circumstance, he added, “should not be risked or countenanced as it is unfair to other medical providers, risks Medicaid funding and opens up the government to potential sanction.”
