88R1364 AMF-F By: Harrison H.B. No. 3891 A BILL TO BE ENTITLED AN ACT relating to the audit of claims and recovery of overpayments by Medicaid recovery audit contractors. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 531.117, Government Code, is amended to read as follows: Sec. 531.117. RECOVERY AUDIT CONTRACTORS. (a) To the extent required under Section 1902(a)(42), Social Security Act (42 U.S.C. Section 1396a(a)(42)), the commission shall establish a program under which the commission contracts with one or more recovery audit contractors for purposes of identifying underpayments and overpayments under Medicaid, including under the Medicaid managed care program, and recovering the overpayments. (b) The commission's office of inspector general shall ensure that a recovery audit contractor: (1) in identifying underpayments and overpayments under the Medicaid managed care program, identifies both payments made to a Medicaid managed care organization and payments made by a Medicaid managed care organization that the organization did not previously identify in an audit and for which the organization did not initiate recovery efforts; and (2) makes efforts to recover identified overpayments. (c) A Medicaid managed care organization may audit a claim the organization paid until the first anniversary of the date the organization paid the claim for purposes of determining whether the organization made an overpayment and initiating recovery efforts. (d) Not earlier than the first anniversary of the date a Medicaid managed care organization paid a claim and not later than the second anniversary of that date, a recovery audit contractor may audit the claim, identify whether the organization made an overpayment, and initiate recovery of any overpayment. The recovery audit contractor may recover an identified overpayment until the third anniversary of the date the organization made the overpayment. SECTION 2. If before implementing any provision of this Act a state agency determines that a waiver or authorization from a federal agency is necessary for implementation of that provision, the agency affected by the provision shall request the waiver or authorization and may delay implementing that provision until the waiver or authorization is granted. SECTION 3. This Act takes effect September 1, 2023.