Billions in State Taxpayer Money Spent in Shroud of Mystery

Updated: 03/09/2012 1:18 PM By: Jay Kolls

State Senator John Marty told us he will fight to open HMO books in the next legislative session starting in January. Right now, the state pays 3-billion annually to nine HMOs to administer Minnesota's public health plans such as Medicaid, MinnCare and General Medical Assistance Care. But, Senator Marty says those HMOs get the check and are not scrutinized over how they spend the money.

Dave Feinwachs, the former lead attorney for the Minnesota Hospital Association, told 5 EYEWITNESS NEWS that taxpayers have a right to see how much money is actually spent on health care and how much goes toward administrative costs at the HMOs. Feinwachs made a video outlining what he calls HMO secrets about public health programs and taxpayer money.

In an exclusive interview with 5 EYEWITNESS NEWS, Feinwachs says HMOs should be held to a higher standard and be required to show where the money went, because the public's money is at stake.

The Minnesota Council on Health Plans says HMOs are already scrutinized enough about where the money is spent and any further, more intrusive audits, would jeopardize trade secrets.