The bill amends the Social Welfare Act to update the auditing process for nursing facilities participating in the Medicaid program. Key definitions are introduced, including "audit," "completed audit," and "Medicaid cost report," with specific requirements for nursing facilities based on the number of medical assistance residents they serve. Facilities with six or more medical assistance residents must file a complete cost report and are subject to a full audit, which includes detailed financial disclosures and justifications for payments made to related parties. The bill also establishes timelines for audits and settlements, requiring that audits be completed within 21 months and settlements issued within 60 days after acceptance of audit adjustments.

Additionally, the bill mandates that the Department of Health and Human Services provide auditor education to ensure consistency in policy application and requires annual reporting on the audit and settlement process. This report must be publicly available and include data on the number of audits conducted and the results of satisfaction surveys from nursing facilities. The bill emphasizes the importance of timely audits and settlements, with provisions for accepting cost reports as filed if audits are not completed within the specified timeframe.

Statutes affected:
House Introduced Bill: 400.111