IL HB5905

Changes the Department of Healthcare and Family Services authority from "is authorized to" to "shall" contract with third-party entities to conduct Payment Recapture Audits to detect and recapture erroneous or fraudulent payments.

Defines Payment Recapture Audits as the process of identifying improper payments to providers, including duplicate payments, payments for services not rendered, overpayments, unauthorized services, and fictitious vendors.

Allows audits to employ professional and specialized auditors on a contingency basis with compensation tied to the identification of misspent funds.

Permits Payment Recapture Audits to be performed in conjunction with similar federal audits and does not prevent the Office of the Inspector General or other authorized agencies from performing their own fraud prevention activities.

Takes effect immediately upon becoming law.