For purposes of this subchapter:
(1) “Abuse” means:
(A) a practice by a provider that is inconsistent with sound fiscal, business, or medical practices and that results in:
(i) an unnecessary cost to Medicaid; or
(ii) the reimbursement of services that are not medically necessary or that fail to meet professionally recognized standards for health care; or
(B) a practice by a recipient that results in an unnecessary cost to Medicaid.
(2) “Allegation of fraud” means an allegation of Medicaid fraud received by the commission from any source that has not been verified by the state, including an allegation based on:
(A) a fraud hotline complaint;
(B) claims data mining;
(C) data analysis processes; or
(D) a pattern identified through provider audits, civil false claims cases, or law enforcement investigations.
(3) “Credible allegation of fraud” means an allegation of fraud that has been verified by the state. An allegation is considered to be credible when the commission has:
(A) verified that the allegation has indicia of reliability; and
(B) reviewed all allegations, facts, and evidence carefully and acts judiciously on a case-by-case basis.
(4) “Fraud” means an intentional deception or misrepresentation made by a person with the knowledge that the deception could result in some unauthorized benefit to that person or some other person. The term does not include unintentional technical, clerical, or administrative errors.
(5) “Furnished” refers to items or services provided directly by, or under the direct supervision of, or ordered by a practitioner or other individual (either as an employee or in the individual’s own capacity), a provider, or other supplier of services, excluding services ordered by one party but billed for and provided by or under the supervision of another.
(6) “Payment hold” means the temporary denial of reimbursement under Medicaid for items or services furnished by a specified provider.
(7) “Physician” includes an individual licensed to practice medicine in this state, a professional association composed solely of physicians, a partnership composed solely of physicians, a single legal entity authorized to practice medicine owned by two or more physicians, and a nonprofit health corporation certified by the Texas Medical Board under Chapter 162, Occupations Code.
(8) “Practitioner” means a physician or other individual licensed under state law to practice the individual’s profession.
(9) “Program exclusion” means the suspension of a provider from being authorized under Medicaid to request reimbursement of items or services furnished by that specific provider.
(10) “Provider” means a person, firm, partnership, corporation, agency, association, institution, or other entity that was or is approved by the commission to:
(A) provide Medicaid services under a contract or provider agreement with the commission; or
(B) provide third-party billing vendor services under a contract or provider agreement with the commission.

Text of section effective until April 01, 2025