The bill introduced by Representative Dovilla mandates the Department of Medicaid to collaborate with the Auditor of State to establish a data sharing agreement for accessing enrollment and eligibility information of Medicaid enrollees within the aged, blind, and disabled eligibility group. The Auditor of State is tasked with conducting a comprehensive audit to identify any individuals within this group who may be ineligible for Medicaid based on asset limits defined in federal regulations. Following the audit, the Department of Medicaid is required to implement a corrective action plan aimed at reducing Medicaid spending for this group by $2.4 billion during the biennium. This plan includes disenrolling ineligible individuals, creating an electronic asset verification system, and pursuing additional cost-reduction initiatives.

Additionally, the bill appropriates $5 million from the General Revenue Fund for the purpose of conducting the audit as outlined in the legislation. This funding is designated specifically for audit management and services, ensuring that the necessary resources are allocated to fulfill the requirements of the audit and subsequent corrective actions. The bill emphasizes the importance of maintaining fiscal responsibility within the Medicaid program while ensuring that only eligible individuals receive benefits.