Amendment ID: S3041-271-R1

Redraft Amendment 271

GIC Oversight

Messrs. Tarr and O'Connor move that the proposed new text be amended  in section 2, in item 1108-5200, by inserting at the end thereof the following:- "provided further, that the office of the inspector general, in consultation with the center for health information and analysis, shall conduct an investigation and submit a report to the house and senate clerks, the joint committee on health care financing and the house and senate committees on ways and means that shall include, but shall not be limited to: (i) a detailed accounting of expenditures made by the group insurance commission in fiscal years 2025 and 2026, including expenditures supported by supplemental appropriations; (ii) an analysis of the commission’s compliance with chapter 32A of the General Laws and applicable procurement and fiscal management requirements; (iii) a review of spending on activities not specifically required by statute, regulation, or contractual obligation and how such spending has changed over time; (iv) an analysis of cost drivers including pharmacy benefit spending, high cost claimants, administrative expenses, and reserve utilization; (v) an assessment of premium and plan cost trends over the preceding 3 fiscal years, including comparisons to statewide health care cost growth benchmarks published by the center for health information and analysis; and (vi) recommendations to ensure fiscal stability, reserve adequacy, and compliance with said chapter 32A; provided further, that the group insurance commission shall comply with all requests from the office of the inspector general or the center for health information and analysis for any information deemed necessary to conducting said investigation and submitting said report, including, but not limited to, requests for the production of records; and provided further, that a preliminary report shall be filed not later than September 30, 2026 and a final report shall be filed not later than March 1, 2027.”

Moves to further amend by inserting in SECTION 2 by inserting the following new item:-

0910-0200 provided further, that not less than $300,000 shall be expended for the office of the inspector general, in consultation with the center for health information and analysis, shall conduct an investigation and submit a report to the house and senate clerks, the joint committee on health care financing and the house and senate committees on ways and means that shall include, but shall not be limited to: (i) a detailed accounting of expenditures made by the group insurance commission in fiscal years 2025 and 2026, including expenditures supported by supplemental appropriations; (ii) an analysis of the commission’s compliance with chapter 32A of the General Laws and applicable procurement and fiscal management requirements; (iii) a review of spending on activities not specifically required by statute, regulation, or contractual obligation and how such spending has changed over time; (iv) an analysis of cost drivers including pharmacy benefit spending, high cost claimants, administrative expenses, and reserve utilization; (v) an assessment of premium and plan cost trends over the preceding 3 fiscal years, including comparisons to statewide health care cost growth benchmarks published by the center for health information and analysis; and (vi) recommendations to ensure fiscal stability, reserve adequacy, and compliance with said chapter 32A; provided further, that the group insurance commission shall comply with all requests from the office of the inspector general or the center for health information and analysis for any information deemed necessary to conducting said investigation and submitting said report, including, but not limited to, requests for the production of records; and provided further, that a preliminary report shall be filed not later than September 30, 2026 and a final report shall be filed not later than March 1, 2027.”………………….$300,000