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

SB 712 requires Texas to contract with recovery audit contractors to identify underpayments (money owed to providers) and overpayments (excess payments) in the Medicaid managed care program. These contractors will specifically review payments to ensure providers are paid correctly and recover any overpayments made. The bill amends the Government Code to establish this process, directly affecting Medicaid managed care programs and healthcare providers receiving state Medicaid payments. It takes effect September 1, 2025, creating a formal mechanism for correcting payment errors within the Medicaid system.