SB 2457 changes the way Medicaid is administered in Texas by limiting the state’s ability to recover overpayments from providers. Specifically, it prohibits the Office of the Inspector General from recovering Medicaid payments made more than four years prior due to waste or abuse unless required by federal law. Additionally, it directs the Texas Health and Human Services Commission (HHSC) to establish new rulemaking procedures before excluding or limiting any Medicaid benefit. The bill aims to increase certainty for Medicaid providers and reduce retroactive financial penalties​.