Allina Health System, Minneapolis, and Minnesota Attorney General Mike Hatch agreed late last week on a set of ground rules to govern the prosecutor's ongoing audit of Allina's 1 million-enrollee health plan, Medica.
Hatch has accused Medica of spending 47% of premium revenue on administrative expenses, with lavish spending on consultants, travel and entertainment (March 26, p. 4). Medica denies the allegations.
Allina agreed to provide unrestricted access to its books and records. Allina's concerns about the audit inappropriately revealing sensitive employee and trade information were alleviated when the attorney general agreed to ensure that the information would remain private.
Allina won the right to review a draft of the audit report and offer comments before it is made public. July 1 is the target deadline for releasing the report.
Meanwhile, a new report shows that Medica was the state's most profitable health plan in 2000, with operating earnings of $20.3 million. Collectively, the state's 10 not-for-profit plans earned $37.5 million on operations, after losing $19.3 million on operations in 1999. Premium increases were responsible for the turnaround.