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H. B. No. 1438 *HR43/R2153* ~ OFFICIAL ~ G1/2
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To: Accountability,
Efficiency, Transparency
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Eubanks
HOUSE BILL NO. 1438
AN ACT TO DIRECT THE GOVERNOR TO SELECT A PRIVATE AUDITOR TO 1
PERFORM AN AUDIT OF THE DEPARTMENT OF HUMAN SERVICES AND THE 2
DIVISION OF MEDICAID TO DETERMINE THE AGENCIES' COMPLIANCE WITH 3
FEDERAL AND STATE LAW REGARDING WELFARE ELIGIBILITY AND FRAUD 4
PREVENTION; TO REQUIRE THE PRIVATE AUDITOR TO PROVIDE A REPORT TO 5
THE GOVERNOR, LIEUTENANT GOVERNOR, AND SPEAKER OF THE HOUSE OF 6
REPRESENTATIVES DETAILING THE FINDINGS OF THE AUDIT REQUIRED BY 7
THIS ACT; AND FOR RELATED PURPOSES. 8
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 9
SECTION 1. (1) As used in this section, the following terms 10
shall be defined as provided in this subsection: 11
(a) "Private auditor" means a private auditing firm 12
selected by and serving at the will and pleasure of the Governor. 13
(b) "Department" means the Mississippi Department of 14
Human Services. 15
(c) "Division" means the Mississippi Division of 16
Medicaid. 17
(d) "Federal and state law" means any statute, 18
regulation, executive order, court order, or other legal 19
requirement of federal or state law. 20
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(e) "Medicaid and Human Services Transparency and Fraud 21
Protection Act" means Section 43-12-1 et seq. 22
(f) "Mississippi Internal Audit Act" means Section 23
25-65-1 et seq. 24
(g) "Mississippi Public Records Act" means Section 25
25-61-1 et seq. 26
(2) On or before June 1, 2026, the Governor shall select a 27
private auditor to perform an audit of the department and the 28
division. The audit shall determine the extent of the audited 29
agencies' compliance with, and efforts to comply with, federal and 30
state law regarding welfare eligibility and fraud prevention, 31
including, without limitation: 32
(a) Submission and execution of a final Advanced 33
Planning Document to the Centers for Medicare and Medicaid 34
Services (CMS) for the purpose of applying for the OMB A87 35
exception to support the integration of eligibility systems; 36
(b) Solicitation of guidance from the CMS and the 37
Office for the Administration of Children and Families ("ACF") on 38
state ideas regarding the Advanced Planning Document and 39
enhancement to front end identity and asset verification; 40
(c) The establishment and use of a computerized income, 41
asset, residence and identity eligibility verification service in 42
order to verify eligibility, eliminate the duplication of 43
assistance, and deter waste, fraud, and abuse within each 44
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respective assistance program administered by the department or 45
the division; 46
(d) The frequency of referrals of suspected cases of 47
fraud, misrepresentation, or inadequate documentation to 48
appropriate agencies, divisions, or departments for review of 49
eligibility discrepancies in other public programs; 50
(e) The solicitation, application, acceptance or 51
renewal of any federal waivers regarding work or volunteer 52
requirements, federal asset limits, or broad-based categorical 53
eligibility; 54
(f) The frequency and kind of eligibility information 55
sharing with other agencies or departments; 56
(g) Procedures used to verify identity, income, assets, 57
age, disability status, household composition, expenses, and any 58
other factor affecting eligibility for any assistance program 59
administered by the department or the division; 60
(h) The dollar amount and number of transactions of 61
benefits accessed or spent out-of-state, disaggregated by state, 62
for any assistance program administered by the department or the 63
division; 64
(i) Verification procedures for all individuals or 65
households before certification for participation in any 66
assistance program administered by the department or the division, 67
including the use of wage records, employer contacts, or other 68
data to confirm income or assets; 69
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(j) Compliance with the Medicaid and Human Services 70
Transparency and Fraud Protection Act; 71
(k) Compliance with the Mississippi Internal Audit Act; 72
and 73
(l) Compliance with any other federal or state law 74
regarding welfare eligibility and fraud prevention. 75
(3) As part of the audit, the private auditor shall have 76
authority to request documents from the audited agency, to conduct 77
interviews of agency personnel and other interested parties, and 78
to pose written questions to the agency, which shall be answered 79
by agency personnel within sixty (60) days of receipt of the 80
request. 81
(4) No later than one hundred eighty (180) days after the 82
private auditor's appointment, the private auditor shall provide 83
to each audited agency a preliminary report detailing the agency's 84
apparent noncompliance with federal and state law regarding 85
welfare eligibility and fraud prevention. Each audited agency 86
shall provide the private auditor with its objections to these 87
findings, reasons therefor, and any supporting documentation, and 88
shall explain the agency's reason for any cited noncompliance. 89
(5) On or before January 1, 2027, and on January 1 of each 90
succeeding year, the private auditor shall provide a report to the 91
Governor, Lieutenant Governor, and Speaker of the House of 92
Representatives detailing the findings of the audit required by 93
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ST: DHS and Medicaid; Governor shall select
private auditor to determine their compliance
with certain laws.
this section. The reports shall be considered public records 94
under the Mississippi Public Records Act. 95
SECTION 2. This act shall take effect and be in force from 96
and after its passage. 97