New KDHE inspector general blocked from official duties

The former Kansas House member who began work in April as inspector general of Medicaid at the state's health agency is prohibited from conducting oversight work until confirmed by the Senate.

Phil Hermanson, a Wichita resident assigned the job of identifying fraud in the $3 billion program, previously came under scrutiny for his lack of investigatory or auditing expertise, and a DUI conviction and business bankruptcy, as well as personal finance and campaign ethics problems.

On Thursday, state officials revealed Hermanson was technically "acting" inspector general. State law applicable to the inspector general of Medicaid at the Kansas Department of Health and Environment restricts that person's authority before confirmation by the Senate.

"He is acting until Senate confirmation," said Sara Belfry, spokeswoman at KDHE. "He cannot perform powers and duties without Senate confirmation."

Belfry said Hermanson wouldn’t necessarily be idle in a $77,000-per-year position with authority over programs revolving around KanCare, because he could engage in training activities.

Hermanson, who reported for duty at KDHE on April 28, has described himself on social media as inspector general of Medicaid serving more than 400,000 disabled and poor Kansans. He hasn't previously made reference to acting or interim status, nor had other state officials.

It is unclear why Hermanson's appointment by the administration of Gov. Sam Brownback wasn't presented to the Legislature for confirmation when lawmakers were in Topeka for the veto session April 30 to May 3 or at final adjournment May 30.

The Legislature doesn't return to Topeka until January for the 2015 session, but an interim Senate committee could take up Hermanson's appointment to the post at KDHE. No hearing has been scheduled for the committee.

"This is one of the more bizarre appointments I've seen," said Senate Minority Leader Anthony Hensley, D-Topeka. "It’s as if Hermanson, who is grossly unqualified for this position, was secretly snuck in the back door, and the Brownback administration hoped no one would notice. Now that this is public, they’re once again playing Kansans for fools and covering it up."

Under state law adopted in 2012, no person appointed to the position of inspector general "shall exercise any power, duty or function of the inspector general until confirmed by the Senate."

A temporary exception apparently could be made if an interim committee conducted a public hearing and vote on the appointee, but the individual later would be subject to a full Senate vote.

Senate Majority Leader Terry Bruce, the Republican chairman of the Senate confirmation committee, wasn't immediately available for comment on Hermanson's case.

The leading Republican and Democrat on the Legislature's committee on Medicaid expressed the view Hermanson's past warranted unusual scrutiny as he began work with the health care program.

Rep. David Crum, a Republican from Augusta, said it would be "important to follow Phil's performance closely.”