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Appropriations panel approves bill to change Medicaid recovery-audit rules, limit contingency fees and add provider protections
Summary
Senate Bill 314 was advanced by the House Appropriations Committee after sponsors said it implements recommendations from an audit of the Recovery Audit Contractor (RAC) program. The bill ties vendor compensation to recoveries, caps contingency fees, adds disclosure requirements and strengthens provider due-process protections.
A sponsor described Senate Bill 314 as legislation to implement audit recommendations and to clarify administrative processes in the state Medicaid recovery audit program. The sponsor told committee members the bill would limit RAC vendor contingent fees to a maximum of 16 percent of recoveries, tier subsequent audits based on prior work, and require…
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