HOUSE BILL 6588 - Summary

• Requires the Department to contract for a beneficiary eligibility audit of public employee health benefits within 60 days of the bill's effective date, to be completed within 180 days.

• Audit must include an amnesty period allowing employees to voluntarily remove ineligible beneficiaries, a verification period to confirm eligibility, and an appeals process for ineligibility decisions.

• State payment for the audit is contingent on achieving a break-even point where total realized savings equal the audit company's actual costs; any savings beyond break-even are split between the state and audit company per their agreement.

• Public employers with individual realized savings must pay their pro-rata share of audit costs to the state.

• Public employers that conducted a beneficiary eligibility audit in the 36 months before the bill's effective date are exempt from participating in this audit.