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Board approves extension and funding increase for Medicaid audit contractor; reverification services added
Summary
The Board of Examiners approved a second amendment extending the Health Management Systems (HMA) contract for Nevada Medicaid through April 30, 2027, and adding funding for continued audit/recovery services and new cost-avoidance reverification work.
The Board of Examiners approved a second amendment on March 11 to the contract between Nevada Medicaid and Health Management Systems (HMA) that extends the contract term to April 30, 2027 and increases the contract authority to continue audit and recovery functions and to add reverification services.
Jennifer Krupp, deputy administrator of Fiscal Services for Nevada Medicaid, described the amendment as an extension of base contract services and the addition of a new reverification service. "This amendment does extend the termination date from April thirtieth of 2025 to April thirtieth of 2027 and does increase the maximum amount of the contract..." Krupp said during the meeting.
Krupp provided the financial breakdown included in the amendment: $738,000 in contract authority to continue existing services for state fiscal year 2025 and $5,125,000 in each of state fiscal years 2026 and 2027 (a total of $10,990,000) to continue existing contract services. She also said $500,000 was added in each of state fiscal years 2026 and 2027 for cost-avoidance reverification services.
Governor Lombardo asked why the increase was necessary if reverification was a normal practice; Krupp and Medicaid staff said the bulk of the increase reflects base costs extended for two additional years and that the reverification work is a new service included in the amendment.
The board approved the set of contracts that included this amendment as part of agenda item 8 (contracts 1 through 33). Attorney General Aaron Ford made the motion to approve contracts 1 through 33, which passed by voice vote.
