| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Appropriations Committee | |
HB 2592
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
Brief Description: Modifying vendor overpayment provisions.
Sponsors: Representatives Morrell and VanDeWege.
Brief Summary of Bill |
|
Hearing Date: 2/11/08
Staff: Mark Matteson (786-7145).
Background:
Vendors of the Department of Social and Health Services (Department) to which the Department
has made overpayments for services rendered must repay the amounts overpaid with interest.
The amount of interest is calculated at 1 percent per month. The accrual period begins when the
Department first sends notice of overpayment to the vendor, or 90 days after the date of
overpayment to the vendor, whichever occurs first. The Department Secretary may secure
overpayments and the interest thereon through a lien against the vendor's real and personal
property, through seizure of assets, or other methods available to the Department for the
satisfaction of debts.
In June 2007, representatives of the Washington State Pharmacy Association (WSPA) met with
Department staff concerning pharmacy audits. In a letter to legislators issued July 3, 2007, the
Department provided context on recent discussions with WSPA. The Department explained that
the discussions yielded agreement about steps to take to address concerns about the Department
audits, including investigating how to modify overpayment interest accrual periods.
Summary of Bill:
Interest on overpayments to a vendor may not begin to accrue earlier than 30 days following
notification by the Department that overpayment has occurred.
Appropriation: None.
Fiscal Note: Requested on February 7, 2008.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.