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Audit finds MHIP did not review claims management

ANNAPOLIS — An audit of Maryland’s state-sponsored health insurance program shows its officials failed to obtain an independent review of the program’s automated claims management system and made payments to a vendor without a written contract.

The legislative audit released Thursday reports that MHIP made $367,000 in payments for information technology services, but officials did not document any competitive bids or have a written contract with the vendor.

Auditors write that without documentation it is unclear whether the state received the best price for the services.

Auditors also say MHIP did not conduct routine reviews to determine whether a vendor was operating under the rules of its contract.

MHIP officials concur with all of the findings and agree to implement recommendations made by the state auditors.