Department of Civil Service
New York State Health Insurance Program: Accuracy of the Interest Credit for 2006
In the New York State Health Insurance Program, the Department of Civil Service administers health insurance programs for active and retired State, local government and school district employees and their dependents. The primary such program is the Empire Plan, which provides services costing about $4 billion a year.
A private contractor, United HealthCare, pays medical service providers for certain of the services provided under the Empire Plan, and the Department of Civil Service reimburses United HealthCare for these payments. In addition, the Department also pays United HealthCare an administrative fee. During the year, the Department periodically pays United HealthCare a premium to help the insurer cover the initial claim payments. If the insurer has a positive cash balance in its Empire Plan account during the year, it is required to pay the Department interest on this cash balance. We examined whether all required interest payments were made by the insurer in 2006 and found that they were.
For a complete copy of Report 2007-S-114 click here.