Committee advances SB147 to add oversight, reporting and advisory board for Medicaid OIG
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Summary
The Government Operations Committee unanimously recommended SB147, a second substitute designed to increase oversight of the Office of Inspector General for Medicaid services by adding Department of Government Operations performance metrics, new reporting duties, and an advisory board while directing some audit functions to OLAG.
The Government Operations Committee unanimously voted to favorably recommend SB147, second substitute, to the full House after the bill’s sponsor described it as a response to a 2025 legislative audit that identified gaps in the Office of Inspector General’s (OIG) governance and audit priorities.
The sponsor told the committee the measure “modifies our responsibilities, and very specifically brings some oversight of the office of inspector general,” saying the bill would add Department of Government Operations responsibilities to measure OIG performance, impose new reporting requirements and create an advisory board to help prioritize reviews. The sponsor added the measure moves certain Medicaid program-integrity audit functions to the Office of the Legislative Auditor General (OLAG).
Why it matters: Committee members said the bill aims to close what the sponsor called a ‘‘black hole’’ in oversight by increasing monthly engagement with the legislative audit committee and creating an advisory group to surface high-impact audit targets. Representative McPherson highlighted a recent audit finding that Department of Health and Human Services had failed to properly report certain invoices and had missed nearly $50,000,000 in rebates, asking whether the bill would help prevent similar losses in the future.
Supporters on the committee described the advisory board and OLAG direction as central to making audits more proactive. The sponsor and staff said OLAG will continue to direct audits under its constitutional role, while the Department of Government Operations and an executive director will be responsible for operational metrics and supervision of the inspector general’s office.
The committee took a voice vote on a motion by Representative McPherson to favorably recommend the bill; the chair announced the recommendation carried unanimously. The committee record shows no public testimony on this bill during the hearing.
Next steps: SB147 will move to the full House for further consideration.