Bill Text: MS HB1438 | 2026 | Regular Session | Introduced

Mississippi House Bill 1438

Introduced

Bill Title: DHS and Medicaid; Governor shall select private auditor to determine their compliance with certain laws.

Sponsorship: Partisan Bill (Republican 1)

Status: (Failed) 2026-02-03 - Died In Committee [HB1438 Detail]

Download: Mississippi-2026-HB1438-Introduced.html

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Accountability, Efficiency, Transparency

By: Representative Eubanks

House Bill 1438

AN ACT TO DIRECT THE GOVERNOR TO SELECT A PRIVATE AUDITOR TO PERFORM AN AUDIT OF THE DEPARTMENT OF HUMAN SERVICES AND THE DIVISION OF MEDICAID TO DETERMINE THE AGENCIES' COMPLIANCE WITH FEDERAL AND STATE LAW REGARDING WELFARE ELIGIBILITY AND FRAUD PREVENTION; TO REQUIRE THE PRIVATE AUDITOR TO PROVIDE A REPORT TO THE GOVERNOR, LIEUTENANT GOVERNOR, AND SPEAKER OF THE HOUSE OF REPRESENTATIVES DETAILING THE FINDINGS OF THE AUDIT REQUIRED BY THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) As used in this section, the following terms shall be defined as provided in this subsection:

(a) "Private auditor" means a private auditing firm selected by and serving at the will and pleasure of the Governor.

(b) "Department" means the Mississippi Department of Human Services.

(d) "Federal and state law" means any statute, regulation, executive order, court order, or other legal requirement of federal or state law.

(e) "Medicaid and Human Services Transparency and Fraud Protection Act" means Section 43-12-1 et seq.

(f) "Mississippi Internal Audit Act" means Section 25-65-1 et seq.

(g) "Mississippi Public Records Act" means Section 25-61-1 et seq.

(2) On or before June 1, 2026, the Governor shall select a private auditor to perform an audit of the department and the division. The audit shall determine the extent of the audited agencies' compliance with, and efforts to comply with, federal and state law regarding welfare eligibility and fraud prevention, including, without limitation:

(a) Submission and execution of a final Advanced Planning Document to the Centers for Medicare and Medicaid Services (CMS) for the purpose of applying for the OMB A87 exception to support the integration of eligibility systems;

(b) Solicitation of guidance from the CMS and the Office for the Administration of Children and Families ("ACF") on state ideas regarding the Advanced Planning Document and enhancement to front end identity and asset verification;

(c) The establishment and use of a computerized income, asset, residence and identity eligibility verification service in order to verify eligibility, eliminate the duplication of assistance, and deter waste, fraud, and abuse within each respective assistance program administered by the department or the division;

(d) The frequency of referrals of suspected cases of fraud, misrepresentation, or inadequate documentation to appropriate agencies, divisions, or departments for review of eligibility discrepancies in other public programs;

(e) The solicitation, application, acceptance or renewal of any federal waivers regarding work or volunteer requirements, federal asset limits, or broad-based categorical eligibility;

(f) The frequency and kind of eligibility information sharing with other agencies or departments;

(g) Procedures used to verify identity, income, assets, age, disability status, household composition, expenses, and any other factor affecting eligibility for any assistance program administered by the department or the division;

(h) The dollar amount and number of transactions of benefits accessed or spent out-of-state, disaggregated by state, for any assistance program administered by the department or the division;

(i) Verification procedures for all individuals or households before certification for participation in any assistance program administered by the department or the division, including the use of wage records, employer contacts, or other data to confirm income or assets;

(j) Compliance with the Medicaid and Human Services Transparency and Fraud Protection Act;

(k) Compliance with the Mississippi Internal Audit Act; and

(l) Compliance with any other federal or state law regarding welfare eligibility and fraud prevention.

(3) As part of the audit, the private auditor shall have authority to request documents from the audited agency, to conduct interviews of agency personnel and other interested parties, and to pose written questions to the agency, which shall be answered by agency personnel within sixty (60) days of receipt of the request.

(4) No later than one hundred eighty (180) days after the private auditor's appointment, the private auditor shall provide to each audited agency a preliminary report detailing the agency's apparent noncompliance with federal and state law regarding welfare eligibility and fraud prevention. Each audited agency shall provide the private auditor with its objections to these findings, reasons therefor, and any supporting documentation, and shall explain the agency's reason for any cited noncompliance.

(5) On or before January 1, 2027, and on January 1 of each succeeding year, the private auditor shall provide a report to the Governor, Lieutenant Governor, and Speaker of the House of Representatives detailing the findings of the audit required by this section. The reports shall be considered public records under the Mississippi Public Records Act.

SECTION 2. This act shall take effect and be in force from and after its passage.