Bill > SB712

This bill modifies Section 544.0504 of the Government Code to expand the responsibilities of recovery audit contractors (RACs) in the Medicaid program. Specifically, the bill requires RACs to identify both underpayments and overpayments, explicitly including those that occur within the Medicaid managed care program. Recovery audit contractors are third-party entities hired to review medical claims and financial transactions to detect billing errors, improper payments, and potential fraud. The bill ensures that these contractors will have a broader mandate to scrutinize Medicaid payments across different payment models, potentially helping to recover funds that were either incorrectly paid out or not fully reimbursed. The changes will take effect on September 1, 2025, and align with federal requirements under the Social Security Act that aim to improve financial oversight and accountability in the Medicaid system.

Health and Social Services

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB712