MI SB1038

Establishes a 21-month deadline for the Michigan Department of Social Services to complete audits of nursing facility Medicaid cost reports, with settlements to be delivered within 60 days of audit completion.

Limits on-site audits to 30 calendar days per cost report year for individual nursing facilities and 180 days for multiple commonly owned facilities, unless the provider agrees to an extended timeline.

Requires nursing facilities with an average of at least 6 Medicaid residents daily to file annual cost reports and submit to audits; facilities with fewer than 6 residents are exempt from audit requirements.

Allows the department to disallow costs if a nursing facility fails to release records within 15 business days of a written request for verification.

Mandates that any cost reports not completed within 21 months must be accepted as filed by the nursing facility, and requires annual reports to stakeholder representatives on audit performance and satisfaction survey results.