House Bill No. 7105 seeks to amend Section 17b-99a of the general statutes to enhance the Department of Social Services' (DSS) authority in conducting forensic audits of various licensed facilities, including chronic and convalescent nursing homes and residential facilities for individuals with intellectual disabilities. The bill introduces the definition of "forensic audit" and requires the Commissioner of Social Services to notify facilities at least thirty days prior to an audit, except in cases of health or safety concerns or evidence of vendor fraud. It also establishes a structured audit process, including the production of preliminary and final reports, exit conferences, and the opportunity for facilities to contest findings. Notably, the bill deletes references to rates under section 17b-340 and adds section 17b-340d, reflecting updates in the regulatory framework.

Additionally, the bill mandates that facilities must cooperate with audits and provide requested assistance within ten business days, with penalties for non-compliance reaching up to $1,000 per day. Facilities may also be liable for audit costs, capped at $100,000, if significant financial issues are uncovered. The DSS is authorized to recover these costs through reduced Medicaid payments and can withhold funds to enforce compliance. The bill also allows facilities to request a fair hearing regarding imposed penalties, ensuring a clear and enforceable framework for conducting audits and addressing financial management issues within these facilities.

Statutes affected:
Raised Bill:
HS Joint Favorable:
File No. 468: