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The Arizona Department of Administration
(Department), Human Resources Division can take various steps to improve its
management and oversight of the new self-funded health benefits program.
Specifically, the Department needs to review its use of consultants in
managing the new self-funded health benefits program and require its vendors
to meet quality-of-care performance measures. Additionally, the Department
should require audits of its vendors’ claims payment processing controls and
review the accuracy and appropriateness of claims paid. Finally, state
agencies report initial satisfaction with the Department’s new hiring and
recruiting software, while the State will need to plan for its compliance
with an accounting standard related to the recognition of nonpension,
post-employment benefits.
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