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Committee approves bill to align state Medicaid rules with federal primary‑payer requirements
Summary
Senate Bill 276, presented by Senator Echols and Department of Community Health staff, would bring state law into alignment with federal requirements in the Consolidated Appropriations Act of 2022 to ensure primary payers cannot unreasonably deny payment and to protect Medicaid reimbursements; the committee passed the bill,
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Senate Bill 276, an agency bill presented to the Full House Insurance Committee by Senator Echols with Department of Community Health staff in attendance, was approved by the committee to align state law with federal requirements intended to protect Medicaid as a payer of last resort.
Senator Echols told the committee the bill "brings us into compliance with federal requirements, of The US, Consolidated Appropriations Act of 2022," and said the intent is to ensure primary payers (for example, commercial insurance, workers’ compensation or settlement proceeds) cannot unreasonably refuse payment and thereby shift costs onto Medicaid.
Brandy Sylvan, director of government relations for the Department of Community Health, explained that the term "medical assistance" in the bill is used broadly to include Medicaid, PeachCare for Kids and waiver programs and that the measure is intended to preserve the integrity of the Medicaid program and support the department’s ability to reclaim funds when private sources or settlements should be primary payers.
Lawmakers asked about enforcement and penalties for noncompliance. Sylvan and the sponsor said the state must comply with federal rules to avoid federal funding risk; Sylvan said she would follow up with the department’s third‑party liability team for details about specific penalties or sanctions if third‑party payers do not comply.
There were no public witnesses supporting or opposing the bill recorded in the transcript. After questions the committee moved, seconded and approved the bill by voice vote; no roll‑call tally was recorded in the transcript.
The sponsor characterized the measure as a technical compliance bill requested by the Department of Community Health to ensure the state can reclaim primary payments and avoid federal reimbursement issues; the transcript identifies the sponsoring agency and cites the Consolidated Appropriations Act of 2022 and Centers for Medicare & Medicaid Services (CMS) direction as the federal drivers for the change.

