JBC unanimously introduces Recovery Audit Contractor bill, creates dedicated cash fund

The Joint Budget Committee voted 6-0 to introduce legislation creating a Recovery Audit Contractor program and a dedicated cash fund for recoveries, the committee chair announced after a motion from the vice chair.

JBC staff and committee members said the draft bill was negotiated with the provider group and the Health Care Policy and Financing committee and is not expected to generate a fiscal impact. A provision requested by Senator Kirkmeyer would establish a special cash fund to hold RAC recoveries; appropriations would be drawn from that fund to cover contingency fees for contractors and related expenditures.

Committee members and staff said the change is intended to make it easier to trace recoveries and expenditures than the current approach of showing recoveries and recoupments as cash-fund sources offsetting general and federal funds. "This would create a dedicated special fund specifically for the recoveries from the RAC program to make it easier to track what's going on with those recoveries and expenditures," a staff member explained.

Members voiced no objections to the introduction. The chair listed initial sponsors: in the Senate, Kirkmeyer and Bridges (with Mabile cosponsoring); in the House, Byrd and Sirota (with Taggart cosponsoring). The committee did not take further action on implementation details at the meeting.

The committee moved on to other agenda items after the introduction.