Chairman Newton says bill would codify Medicaid verification to avoid federal penalties

Chairman Newton told the House Rules Committee that a substitute to House Bill 1276 (LC 52, 1072S) would codify the state’s Medicaid verification process with the Department of Community Health (DCH) and the Department of Human Services (DHS) to avoid large federal penalties when federal verification resumes in 2027.

The measure, Newton said, mirrors many steps DCH and DHS already take but places them in statute so responsibilities are clear across departments and "there was never a ball dropped and significant penalties to the program." He warned committee members that the change aims to prevent "multi‑hundred million dollar penalties to the program when verification starts on" with a look‑back in 2027, and that the legislation includes exceptions and references to compliance "as required under federal law."

Leader Hughley asked why statutory codification was necessary rather than leaving details to rules and regulations and how the state would respond if federal guidance changed. Newton replied that the bill leaves room for departments to comply with federal law in effect and that penalties described in the substitute are a new enforcement effort intended to "root out potentially waste or fraud." He noted the statute includes language to defer to federal requirements where specified.

A motion to approve the substitute was made and seconded and the committee approved it. The committee did not state a recorded roll‑call vote in the transcript; the proceedings reflect a voice approval on the floor.

The substitute now moves forward on the committee’s supplemental calendar for further consideration by the full House.