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Senate amendment would let providers post surety bonds to free withheld Medicaid payments; members debate costs and access
Summary
Amendment A6 would let providers subject to a payment withhold post an additional surety bond to secure release of withheld funds while investigations proceed; supporters say it safeguards good providers caught in long investigations, while critics warned of added costs and barriers to small or rural providers. The amendment was placed into the work after committee votes.
An amendment discussed at the joint hearing, A6, would allow a provider facing a payment withhold following a credible allegation of fraud to post an additional surety bond so withheld funds could be released while an investigation continues.
Sponsor Senator Abler described the concept as a way to preserve provider operations and the continuity of services: "It would allow a provider who is subject to a withhold…
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