A Performance Audit of the Pennsylvania Insurance Department's Oversight of the CHIP

A Performance Audit of thePennsylvania Insurance Department’s Oversight of theApril 2002Auditor General Robert P. Casey, Jr.April 30, 2002The Honorable Mark S. SchweikerGovernorCommonwealth of Pennsylvania225 Main Capitol BuildingHarrisburg, Pennsylvania 17120Dear Governor Schweiker:This report contains the results of the Department of the Auditor General’sperformance audit of the Pennsylvania Insurance Department’s Children’s HealthInsurance Program (CHIP) for the period July 1, 1997, to July 31, 2001. The audit wasconducted pursuant to Section 402 of The Fiscal Code and in accordance withGovernment Auditing Standards as issued by the Comptroller General of the UnitedStates.As you know, the Children’s Health Insurance Program provides health carecoverage to children who otherwise would not be able to afford insurance. There is nodoubt that this program benefits many of Pennsylvania’s children by providing them themeans to get regular checkups, immunizations, diagnoses and treatments of illness orinjury, prescription drugs, and dental, vision, and hearing care.Despite the efforts made by the Insurance Department—and despite the CHIPstaff’s professional work ethic, compassion for children, and cooperation with ouraudit—we found numerous deficiencies in the program. These deficiencies must beaddressed to ensure that all eligible children receive health benefits, that such benefits aremeasured and monitored, and that the overall program is ...