TexasHB 14289th Legislature Regular SessionHouse

Relating to the Health and Human Services Commission's office of inspector general, the review of certain Medicaid claims, and the recovery of certain overpayments under Medicaid.

Sponsored By: Carrie Isaac, Candy Noble, Charles Perry (Republican)

Signed by Governor

Electronic Information SystemsHuman Services--Medical AssistanceMEDICAIDWITNESSESHEALTH & HUMAN SERVICES COMMISSIONINSPECTOR GENERAL FOR HEALTH & HUMAN SERVICES

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 0 costs, 1 mixed.

Medicaid providers face broader payment audits

Beginning September 1, 2025, Texas must use Medicaid recovery audit contractors to the extent federal law requires. Contractors identify underpayments and overpayments, including in managed care, and recover overpayments from providers or managed care organizations. Reviewed providers and plans must submit all needed information by the requested deadline; collected records remain confidential. Implementation requires dedicated funding unless the agency chooses to use other available funds. Agencies must request any needed federal approval and may delay affected provisions until approval arrives.

Texas strengthens health program fraud oversight

Beginning September 1, 2025, Texas’s health inspector general may share oversight information to carry out the office’s duties. Recipients include government agencies, law enforcement, prosecutors, and other people authorized by the office. Qualified experts hired by the commission for the office count as expert witnesses under state procurement law. Health agencies must maintain and promote a fraud-reporting system, replacing the specific toll-free hotline requirement without requiring a particular format. The law also requires strong publicity for successful fraud prosecutions and fraud-prevention programs.

Fewer fingerprint checks for licensed Medicaid professionals

Beginning September 1, 2025, the inspector general generally cannot use fingerprint checks to decide a licensed professional’s Medicaid provider eligibility. This protection applies only after the office confirms the professional is licensed and in good standing. Federally required checks remain allowed, as do checks for other appropriate purposes, including fraud, waste, or abuse investigations.

Medicaid audits face limits and appeals

Beginning September 1, 2025, recovery audit contractors need inspector general approval and a finding that a review is cost-effective. They must also wait at least one year after a claim is received before starting review. Contractors cannot start recovery when a managed care organization has notified the office that it is auditing that claim. The executive commissioner must set rules for appealing contractor-identified overpayments. The commission may hire third parties to administer appeals.

Sponsors & Cosponsors

Sponsors

  • Carrie Isaac

    House

  • Candy Noble

    House

  • Charles Perry

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 433 • No: 1

House vote • 5/19/2025

Record vote

Yes: 123 • No: 1

Senate vote • 5/8/2025

Record vote

Yes: 0 • No: 0

Senate vote • 5/8/2025

Record vote

Yes: 0 • No: 0

House vote • 4/16/2025

Record vote

Yes: 144 • No: 0

House vote • 4/15/2025

Record vote

Yes: 146 • No: 0

Senate vote • Unknown

Committee vote: Health & Human Services

Yes: 9 • No: 0

House vote • Unknown

Committee vote: Human Services

Yes: 11 • No: 0

Actions Timeline

  1. Effective on 9/1/25

    5/29/2025House
  2. Signed by the Governor

    5/29/2025House
  3. Sent to the Governor

    5/20/2025House
  4. Signed in the Senate

    5/20/2025Senate
  5. House concurs in Senate amendment(s)-reported

    5/20/2025Senate
  6. Signed in the House

    5/20/2025House
  7. Reported enrolled

    5/19/2025House
  8. Text of Senate Amendment(s)

    5/19/2025House
  9. Statement(s) of vote recorded in Journal

    5/19/2025House
  10. Record vote (RV#2991)

    5/19/2025House
  11. House concurs in Senate amendment(s)

    5/19/2025House
  12. Senate Amendments Analysis distributed

    5/8/2025House
  13. Senate Amendments distributed

    5/8/2025House
  14. Senate passage as amended reported

    5/8/2025House
  15. Record vote

    5/8/2025Senate
  16. Passed

    5/8/2025Senate
  17. Read 3rd time

    5/8/2025Senate
  18. Record vote

    5/8/2025Senate
  19. Three day rule suspended

    5/8/2025Senate
  20. Vote recorded in Journal

    5/8/2025Senate
  21. Read 2nd time & passed to 3rd reading

    5/8/2025Senate
  22. Rules suspended-Regular order of business

    5/8/2025Senate
  23. Placed on intent calendar

    5/7/2025Senate
  24. Committee report printed and distributed

    5/5/2025Senate
  25. Recommended for local & uncontested calendar

    5/5/2025Senate

Bill Text

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