Monitoring the Session

HB 3984

bill making Medicaid auditors check managed care too

Died in committee

Verdict: No flags

No flagsInitial review
Rep. Tom OliversonRHouse 130

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the identification of underpayments and overpayments under the Medicaid managed care program.

Caption from analyzed text · version I.

Summary

Underpayments and overpayments, managed care included.

The bill rewrites the state law on Medicaid recovery audit contractors so that these outside auditors must look for underpayments and overpayments in the Medicaid managed care program too, not just in Medicaid generally. It touches the Health and Human Services Commission, the contractors it hires, and the managed care companies and providers paid through Medicaid. On the ground, managed care payments come under the same outside audit and recovery program starting September 1, 2025.

Labels

Labels: QUICK READ: 126 WORDS. The bill as filed runs 126 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).GOT HALFWAY. Passed the House on May 12, 2025. Died in the Senate: never got out of the Health & Human Services committee.

Receipt

The receipt

89R-HB3984 · 2025-03-06

SOLD BY

Rep. Tom OliversonRHouse 130

ITEM

relating to the identification of underpayments and overpayments under the Medicaid managed care program.

WHAT IT DOES

Underpayments and overpayments, managed care included.

The bill rewrites the state law on Medicaid recovery audit contractors so that these outside auditors must look for underpayments and overpayments in the Medicaid managed care program too, not just in Medicaid generally. It touches the Health and Human Services Commission, the contractors it hires, and the managed care companies and providers paid through Medicaid. On the ground, managed care payments come under the same outside audit and recovery program starting September 1, 2025.

CHARGES

[ ] NONE FOUND

TOTAL

Net to General Revenue · FY 2026($3,152,842)

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB3984, Committee Report 1st House, Substituted: a positive impact of $4,060,855 through the biennium ending August 31, 2027. The Texas Health and Human Services Commission (HHSC) is required to implement the provisions of the bill only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the agency may, but is not required to, implement the bill using other appropriations available for that purpose. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($3,152,842)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Human Services
  4. Scheduled for public hearing on . . .
  5. Considered in public hearing
  6. Committee substitute considered in committee
  7. Testimony taken/registration(s) recorded in committee
  8. Left pending in committee
  9. Considered in formal meeting
  10. Committee substitute considered in committee
  11. Reported favorably as substituted
  12. Comte report filed with Committee Coordinator
  13. Committee report distributed
  14. Committee report sent to Calendars
  15. Considered in Calendars
  16. Placed on General State Calendar
  17. Read 2nd time
  18. Passed to engrossment
  19. Record vote RV#2115
  20. Read 3rd time
  21. Passed
  22. Record vote RV#2148
  23. Reported engrossed
  24. Received from the House
  25. Read first time
  26. Referred to Health & Human Services
FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 143 yea · 0 nay

Sources

House: Final passage · May 12, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Tom Oliverson

Donors

Donors report through Friends of Tom Oliverson.

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Votes2

House May 12, 2025

Yea
143
Nay
0
Present, not voting
1
Absent
3
Excused
3
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2148

HB 3984 was passed by (Record 2148): 143 Yeas, 0 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 143 (published)
  • Nay: 0 (published)
  • Present, not voting: 1 (published)
  • Absent: 3 (derived from named list)
  • Excused: 3 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House May 10, 2025

Yea
124
Nay
0
Present, not voting
1
Absent
3
Excused
22
Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 2115

CSHB 3984 was passed to engrossment by (Record 2115): 124 Yeas, 0 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

  • Yea: 124 (published)
  • Nay: 0 (published)
  • Present, not voting: 1 (published)
  • Absent: 3 (derived from named list)
  • Excused: 22 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses4
For
1
Against
0
On
3
Names

For

  • Self; Texas Public Policy Foundatiom1 registration

On

  • Health and Human Services Commission1 registration
  • Office of Inspector General for Health and Human Services2 registrations
Sources

4 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Fiscal
Net to General Revenue · FY 2026($3,152,842)

LBB estimate, flow · fiscal note version H · ( ) = negative · source

Sources

Fiscal note · version H · April 27, 2025

Estimated Two-year Net Impact to General Revenue Related Funds for HB3984, Committee Report 1st House, Substituted: a positive impact of $4,060,855 through the biennium ending August 31, 2027. The Texas Health and Human Services Commission (HHSC) is required to implement the provisions of the bill only if the legislature appropriates money specifically for that purpose. If the legislature does not appropriate money specifically for that purpose, the agency may, but is not required to, implement the bill using other appropriations available for that purpose. The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

First year · FY 2026 · ($3,152,842)

Probable Net Positive/(Negative) Impact to General Revenue Related Funds

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 6, 2025

05/13/2025 S Referred to Health & Human Services

Texas Legislature Online · Introduced · House Committee Report · Engrossed

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Human Services · Committee vote 10 aye, 0 nay, 1 absent · Out of committee

Senate committee · Health & Human Services · Final status: Died in committee

Companion

SB 712 by Hughes (identical)

SB 2458 by Hughes (similar)

Subjects

Human Services--Medical Assistance

AUDITS & AUDITORS

MANAGED CARE

MEDICAID

HEALTH & HUMAN SERVICES COMMISSION

Text

The text as introduced · 126 words

89R3361 CMO-F

By: Oliverson
H.B. No. 3984

A BILL TO BE ENTITLED

AN ACT

relating to the identification of underpayments and overpayments

under the Medicaid managed care program.

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

SECTION 1. Section 544.0504, Government Code, as effective

April 1, 2025, is amended to read as follows:

Sec. 544.0504. RECOVERY AUDIT CONTRACTORS. To the extent

required under Section 1902(a)(42), Social Security Act (42 U.S.C.

Section 1396a(a)(42)), the commission shall establish a program

under which the commission contracts with one or more recovery

audit contractors to :

(1) identify Medicaid underpayments and overpayments ,

including underpayments and overpayments under the Medicaid

managed care program; and

(2) recover the overpayments.

SECTION 2. This Act takes effect September 1, 2025.