The bill, S.B. No. 712, amends Section 544.0504 of the Government Code to enhance the Medicaid managed care program by establishing a program for recovery audit contractors. The new provisions require the commission to contract with these auditors to identify both underpayments and overpayments specifically within the Medicaid managed care program, as well as to recover any identified overpayments.

The amendments include the insertion of specific responsibilities for the recovery audit contractors, which are to identify Medicaid underpayments and overpayments and to recover the overpayments. This bill is set to take effect on September 1, 2025.