Sec. 1. 22 MRSA §41-B is enacted to read:

§41-B.__Auditing and adjusting of health and community

service provider costs

This section governs the rules of the department and the practices of its auditors in interpreting and applying those rules with respect to payments of providers under the MaineCare program and payments by the department under grants and agreements audited pursuant to the Maine Uniform Accounting and Auditing Practices Act for Community Agencies.

1.__Revised audit interpretations to be applied prospectively.__ Whenever the department's auditors revise an interpretation of a rule, agreement, circular or guideline in a manner that results in a negative adjustment of a provider's or agency's allowable costs, the revised interpretation may be applied only to provider or agency fiscal years beginning after the date of the examination report or audit report in which the provider or agency receives notice of the revised interpretation.__For the fiscal year to which the report containing the revised interpretation applies, and any subsequent fiscal year ending prior to the issuance of the revised interpretation, the Office of Audit for MaineCare and Social Services, referred to in this section as "the office of audit,"__may not make any negative adjustment to allowable costs that reflects the revised interpretation.__For purposes of this subsection, "revised interpretation" includes an interpretation supporting an adjustment that was not made in the prior year, when facts existed on which a substantially similar adjustment could have been made in the prior year if the same interpretation had been applied, even if reports in prior years were silent with respect to any such adjustment.

2.__Timing of audits.__Unless otherwise agreed to by the organization subject to audit, the department shall complete its audit and issue an examination report or audit report no later than 12 months following the filing of any cost report, financial statement or other schedule that is subject to audit.

3.__Appeal time frames.__The department shall allow a provider 60 days after the provider's receipt of an audit report, examination report or other audit determination to seek informal review of that determination.__The department shall allow 60 days after its receipt of a final informal review decision for a provider to request an appeal hearing for review of that decision.