1. (a) HHSC is responsible for audits of participating MCOs.
2. (b) For purposes of this rule, the term "participating MCO" includes MCO subcontractors.

3. (c) HHSC conducts audits of participating MCOs, including financial audits, performance audits, and compliance audits:

   1. (1) with the scope and frequency necessary to ensure the effective management and control of the MCOs; and
   2. (2) as necessary to comply with all federal and state laws.
4. (d) The HHSC Executive Commissioner establishes policy outlining the roles and responsibilities of the divisions and offices of HHSC, including the Internal Audit Division, the Office of Inspector General, and the Medicaid/CHIP Division, in performing audits of participating MCOs.

Source Note:The provisions of this §353.6 adopted to be effective July 14, 2016, 41 TexReg 5038.