Bill
HB 2217
Expands the Inspector General to audit, investigate, and review all state cash, food, and health assistance programs, with new enforcement and reporting powers.
Status
- Motion to override veto prevailed (Yea: 30, Nay: 10).
- Enacted; law effective July 1, 2025.
- Introduced January 29, 2025; amended in House Committee on Health and Human Services.
Purpose
- Converts the Office of Medicaid Inspector General into a broader Office of Inspector General (OIG) within the Attorney General’s Office with authority to audit, investigate, and perform performance reviews of all state cash, food, and health assistance programs (beyond Medicaid/CHIP).
Key provisions and changes
- Expanded scope and definitions:
- Adds definitions for “cash assistance,” “food assistance,” and “health assistance” (Medicaid and CHIP). The enrolled version does not include the state employee health benefits plan.
- Replaces many program-specific references (Medicaid/MediKan/CHIP) with “any state cash, food or health assistance program.”
- Powers granted to the Inspector General and designees:
- Original jurisdiction to investigate crimes related to public assistance, including Medicaid Fraud Control Act violations, eligibility fraud for cash/food/child-care subsidy/medical assistance, provider fraud, and related records offenses.
- Authority to issue and serve subpoenas; compel attendance, testimony, and production of books/electronic records; administer oaths; take sworn statements under penalty of perjury; and execute search warrants in any county related to OIG investigations.
- Access to contractor files limited to records necessary to verify invoices or contract compliance.
- Clarification: healthcare providers cannot be compelled to provide medical records of patients who are not program clients.
- Oversight, reporting, and prosecutorial coordination:
- OIG must report to the Attorney General when it finds credible evidence of “significant levels” of fraud, waste, abuse, or other illegal acts.
- Maintains ability to present criminal findings for prosecution to the Attorney General or U.S. Attorney and adds authority to present findings to applicable district or county attorneys.
- Adjusts annual report content (adds type of audit conducted; removes requirement to include aggregate provider billing/payment information and specific KDHE program references).
- Employment/ethics and removal:
- Prohibits a current or former Inspector General from serving as an executive/manager for any program or agency subject to OIG oversight for two years after leaving the OIG.
- Requires the Attorney General to remove the Inspector General for cause prior to term expiration (strengthening/removing discretion language).
Fiscal impact (per Fiscal Note, Kansas Division of the Budget / Attorney General)
- State General Fund cost beginning FY 2026: approximately $955,858 (FY2026) and $1,003,650 (FY2027); supports 9.00 additional FTE in the Attorney General’s Office.
- Costs cover salaries, fringe benefits, and operating expenses to perform additional audits, reviews, and investigations.
- The AG’s Office projects these costs would be offset over time by prevented fraud, recoveries, overpayment identification, and program savings. OMIG historical results cited: since 2021, audits/reviews identified ~$300 million in wasteful spending, $6.3M in overpayments, ~$25M in savings, and multiple criminal referrals; with additional staff OMIG estimates it could open many more investigations (e.g., 200 additional per year).
Who is affected
- Primary: Office of the Attorney General (OIG) — expanded duties and staffing; providers, contractors, fiscal agents, and recipients of state cash, food, and health assistance programs.
- State agencies administering programs (e.g., Department for Children and Families): DCF, KDHE, and KBI indicated no direct fiscal effect; DCF currently retains investigators for cash and food assistance and would continue those activities.
- Local district and county attorneys may receive additional referrals for prosecution.
Implementation / Timeline
- Enrolled and effective July 1, 2025.
- Requires the Attorney General to appoint (and Senate to confirm) an Inspector General consistent with statutory appointment procedures.
Compiled from official sources — confirm details with the bill’s official record.
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