Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Recovery Audit Contractor Program topic
No spam. Unsubscribe anytime.
Joint Budget Committee unanimously introduces recovery audit contractor program bill
Summary
The Joint Budget Committee voted 6-0 to introduce a bill creating a recovery audit contractor (RAC) program and a dedicated cash fund to track recoveries and related expenditures; staff said the change should not alter provider operations and health care policy staff do not expect a fiscal impact.
The Joint Budget Committee voted 6-0 to introduce legislation establishing a recovery audit contractor (RAC) program and creating a dedicated cash fund to collect recoveries and pay related expenditures.
The bill was introduced after committee staff distributed a revised draft that, staff said, reflected negotiation between the Department of Health Care Policy and Financing and provider groups. "My understanding is that they've reached consensus, and everybody is willing to go along with this bill," the drafter said during the discussion. The draft includes an appropriations clause and a provision, requested by Senator Kirkmeyer, to create a cash fund for RAC revenues and to use that fund for appropriations tied to the program.
Committee staff said the change is intended to improve transparency by separating recoveries and recoupments into a distinct cash fund rather than rolling them into the broader medical services premium line. A JBC staff member said the change "doesn't change their operations; it changes their accounting a little bit." Committee members and staff said providers and the department signaled support for the revision.
Madam Vice Chair moved to introduce the bill; the committee carried the motion and the measure will start in the Senate. Committee members identified senators Kirk Meyer and Bridges as sponsors in the Senate and Representative Byrd and Representative Sirota as sponsors in the House; Senator Mabile and Representative Taggart were listed as cosponsors. The committee chair announced the motion passed unanimously.
Why it matters: the bill formalizes how the state will track recoveries and the payments tied to contractor contingency fees for RAC work. By creating a dedicated fund, committee members said they expect better visibility into how much is recovered and how much is paid to contractors.
What comes next: the bill will be filed in the Senate with the sponsors identified by the committee and move through the regular bill process.
