OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-7105
AN ACT CONCERNING FORENSIC AUDITS CONDUCTED BY THE
DEPARTMENT OF SOCIAL SERVICES.
Primary Analyst: ES 4/1/25
Contributing Analyst(s): LD
Reviewer: RW
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 26 $ FY 27 $
Social Services, Dept. GF - Potential See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill may result in a fiscal impact to the Department of Social
Services (DSS) associated with forensic audits and related potential civil
monetary penalties on certain facilities. The bill specifies that audited
facilities would be liable for forensic audit costs, up to $100,000 under
certain circumstances. The bill also subjects facilities to civil penalties of
up to $1,000 for each day a facility fails to comply with a DSS request
related to a forensic audit. DSS may (1) recover such costs and penalties
through reduced Medicaid payments otherwise due to impacted
facilities, or (2) receive reimbursement for audit costs and collect civil
penalties and reflect an associated revenue gain.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to forensic audits and any monetary
penalties imposed.