The bill mandates the Department of Medicaid to establish a data sharing agreement with the Auditor of State to facilitate the exchange of enrollment and eligibility information for Medicaid enrollees in 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.

The bill also includes an appropriation of $5 million from the General Revenue Fund for audit management and services to support the audit mandated in Section 1. This funding is designated specifically for the fiscal year 2025, with no additional appropriations for fiscal year 2026. The Director of Budget and Management is responsible for establishing accounts for these appropriations and ensuring compliance with the main operating appropriations act of the 136th General Assembly.