Medicaid cost containment bill amended, advanced

Lawmakers amended and advanced a bill Feb. 24 designed to encourage the fiscal integrity of Nebraska’s Medicaid program.

Introduced in 2011 by the Health and Human Services Committee, LB541 was advanced to final reading last session. Lawmakers voted to return the bill to select file Feb. 24 to consider an amendment.

The bill would require the state Department of Health and Human Services (DHHS) to contract with one or more recovery audit contractors for the following services:
• provider claim review and overpayment recovery;
• cost avoidance through identifying third-party liability;
• cost recovery of third-party liability through postpayment reimbursement; and
• identification and recovery of claims that were the result of accident or neglect and payable to a casualty insurer.

An amendment, offered by Lincoln Sen. Kathy Campbell and adopted 39-0, would require DHHS to report to the Legislature by Dec. 1, 2012 on the status of all contracts authorized in the bill.

The amendment also would limit contingent fees to no more than 12.5 percent of amounts recovered. In addition, all amounts recovered and savings generated from the contracts would be returned to the medical assistance program.

Campbell said the amendment reflected concerns expressed by Lincoln Sen. Danielle Conrad during previous debate on the bill.

“We feel that her suggestions are good ones and would make the bill stronger,” Campbell said.

Following adoption of the amendment, senators re-advanced LB541 to final reading by voice vote.