AR HB1853

Prohibits the Division of Medical Services from entering into Medicaid integrity audit contracts where auditor compensation is based, directly or indirectly, on the amount of overpayments identified or collected.

Requires the state to seek a waiver from the Centers for Medicare and Medicaid Services within 45 days to eliminate the contingent fee requirement for recovery audit contractors, submitted via amendment to the Medicaid state plan.

Exempts existing Medicaid integrity audit contracts entered before state plan amendment approval and existing contingent fee contracts entered before July 1, 2013, but prohibits renewal of contingent fee contracts after July 1, 2013 or waiver effective date, whichever is later.

Establishes that section 20-77-125 supersedes section 17-92-1201(f) regarding Medicaid integrity audits of pharmacies and pharmacists once the state plan amendment is approved, while preserving all other provisions of the Pharmacy Audit Bill of Rights.

Declares an emergency, finding that Medicaid providers face increasing audits by contracted entities that should be compensated based on work volume rather than overpayments identified, making immediate action necessary for public health and safety.