Section 6506

SEC. 6506. OVERPAYMENTS.

[a] Extension of Period for Collection of Overpayments Due to Fraud-

[1] IN GENERAL- Section 1903[d][2] of the Social Security Act [42 U.S.C. 1396b[d][2]] is amended--

[A] in subparagraph [C]--

[i] in the first sentence, by striking '60 days' and inserting '1 year'; and

[ii] in the second sentence, by striking '60 days' and inserting '1-year period'; and

[B] in subparagraph [D]--

[i] in inserting '[i]' after '[D]'; and

[ii] by adding at the end the following:

'[ii] In any case where the State is unable to recover a debt which represents an overpayment [or any portion thereof] made to a person or other entity due to fraud within 1 year of discovery because there is not a final determination of the amount of the overpayment under an administrative or judicial process [as applicable], including as a result of a judgment being under appeal, no adjustment shall be made in the Federal payment to such State on account of such overpayment [or portion thereof] before the date that is 30 days after the date on which a final judgment [including, if applicable, a final determination on an appeal] is made.'.

[2] EFFECTIVE DATE- The amendments made by this subsection take effect on the date of enactment of this Act and apply to overpayments discovered on or after that date.

[b] Corrective Action- The Secretary shall promulgate regulations that require States to correct Federally identified claims overpayments, of an ongoing or recurring nature, with new Medicaid Management Information System [MMIS] edits, audits, or other appropriate corrective action.