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RAC: Recovery Audit Contractor Program
The Centers for Medicare & Medicaid Services (CMS) has taken the next steps in the agency’s comprehensive efforts to identify improper Medicare payments and fight fraud, waste and abuse in the Medicare program by awarding contracts to four permanent Recovery Audit Contractors (RACs) designed to guard the Medicare Trust Fund.
 
Modern Healthcare Coverage of RAC
News
AHA lends support for recovery audit contractor program changes
By Jessica Zigmond | October 16, 2012 | Basic Web Basic Web Subscription Details
The country's hospitals offered their support Tuesday for federal legislation that would make changes to the recovery audit contractors program and other national audit programs.
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News
Va. names HMS as Medicaid RAC
By Rich Daly | August 22, 2012 | Basic Web Basic Web Subscription Details
Virginia selected a recovery audit contractor with experience in the newly authorized fraud detection and prevention program for Medicaid.
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News
Not-for-profits face more government audits than for-profits, survey finds
By Ashok Selvam | August 14, 2012 | Basic Web Basic Web Subscription Details
Not-for-profit healthcare organizations face greater scrutiny from government audits than their for-profit counterparts, according to a Health Care Compliance Association survey.
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News
Hospital groups rip regulation efforts, urge better guidance
By Joe Carlson | July 15, 2012 | Basic Web Basic Web Subscription Details
As scrutiny of healthcare provider payments grows, hospital leaders say regulators are increasingly undercutting physicians' medical judgment and resorting to overly punitive corrective actions.
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News
Weaknesses seen in anti-fraud programs
By Jessica Zigmond | June 07, 2012 | Basic Web Basic Web Subscription Details
Representatives of two federal agencies on Thursday testified about the need to address weaknesses in the Medicare and Medicaid programs, while a CMS official said collaborative efforts with states and a two-pronged strategy have shown promise in preventing fraud.
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Magazine
Caught in the middle | Under tough scrutiny from the CMS over which patients should be admitted for care, hospitals are frustrated—and patients are fighting back
By Joe Carlson | May 12, 2012 | Print Magazine Print Magazine Subscription Details
The threat of ceaseless auditing and penalties is causing many hospitals to reclassify Medicare patients as less-costly “observation” cases, and the people receiving the care say the confusing change leaves them on the hook for medical bills that the government ought to cover.
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Magazine
Got a better idea? | Senators ask providers for fraud-fixing suggestions
By Joe Carlson | May 05, 2012 | Print Magazine Print Magazine Subscription Details
Experts generally agree that a staggering amount of money—between $20 billion and $100 billion—in federal spending on healthcare programs is lost to waste, fraud and abuse each year despite an ongoing crackdown by the government and its private contractors.
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News
Senators ask providers to weigh in on fraud prevention
By Joe Carlson | May 02, 2012 | Basic Web Basic Web Subscription Details
A bipartisan group of six lawmakers from the Senate Finance Committee issued an open letter to healthcare providers, payers and patients seeking input on better ways to prevent waste and fraud in healthcare, including ideas on improving the current audit system for alleged overpayments.
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News
Finance Committee to seek provider input on fraud prevention | Panel is already looking into complaints about RAC, ZPIC programs, investigative counsel says
By Joe Carlson | May 01, 2012 | Basic Web Basic Web Subscription Details
Senate Finance Committee members plan to issue an open letter to U.S. healthcare providers to broadly solicit advice on the best ways to prevent waste, fraud and abuse in federal healthcare programs.
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News
White House cites progress on payment errors
By Rich Daly | November 15, 2011 | Basic Web Basic Web Subscription Details
Various Medicare and Medicaid auditing initiatives have sharply lowered erroneous excess payments under the programs over the past three years, according to the...
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News
HMS Holdings Corp. to buy HealthDataInsights
By Paul Barr | November 07, 2011 | Basic Web Basic Web Subscription Details
HMS Holdings Corp., a New York-based benefits coordinator for payers, has signed a definitive agreement to acquire privately held HealthDataInsights, Las Vegas, a recovery...
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Magazine
Building momentum | RAC recoveries grow as program expands
By Melanie Evans | October 10, 2011 | Print Magazine Print Magazine Subscription Details
Audits that have turned up more than $680 million so far in Medicare payment errors started slowly in the first year, a new report shows. More recent data suggest auditors have grown more aggressive as the program prepares to expand.
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Magazine
Medicaid RAC overkill | Reviews of medical treatment worry hospitals
By Rich Daly | September 19, 2011 | Print Magazine Print Magazine Subscription Details
Hospitals fear Medicaid's new audit program could mean multiple examinations of the same issues from different reviewers, as well as more reviews of the medical necessity of hospital care.
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News
HHS issues Medicaid RAC rule
By Jessica Zigmond | September 14, 2011 | Basic Web Basic Web Subscription Details
Building on the Medicare Recovery Audit Contractor program, HHS on Wednesday issued a final rule to establish a Medicaid Recovery Audit Contractor program that the agency expects will save $2.1 billion in waste over the next five years.
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News
RAC program collects $233 million
By Jessica Zigmond | August 03, 2011 | Basic Web Basic Web Subscription Details
The CMS' Medicare fee-for-service recovery audit contractor program collected about $233.4 million in overpayments from March through June of this year, bringing the total of recouped overpayments since October 2009 to about $575.2 million.
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Magazine
RAC appeals data sought | 85% overturned in favor of providers, AHA says
By Jessica Zigmond | May 02, 2011 | Print Magazine Print Magazine Subscription Details
The American Hospital Association said last week that it is pleased the CMS has released data on what it has recouped in improper Medicare payments, but would still like to see information about the appeals process in the agency's recovery audit contractor program.
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News
CMS collects $162 million in overpayments in first three months of 2011
By Christine LaFave Grace | April 26, 2011 | Basic Web Basic Web Subscription Details
The CMS has collected more than $313 million in Medicare overpayments through its recovery audit program since October 2009, according to the CMS' most recent recovery-audit report—and nearly half of that was collected from January through March of this year.
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News
Proposed rule offers states pay options for Medicaid RACs
By Jessica Zigmond | November 05, 2010 | Basic Web Basic Web Subscription Details
In a proposed rule regarding new Medicaid recovery audit contractors, the CMS said states will be allowed to determine whether to pay their Medicaid RACs on a contingency basis or under some other fee structure that identifies underpayments.
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News
Grassley sees potential for conflicts in contractor programs
By Jessica Zigmond | October 29, 2010 | Basic Web Basic Web Subscription Details
Senate Finance Committee ranking member Chuck Grassley (R-Iowa) has asked the CMS to list any identified conflicts of interest among the agency's contractors and highlight any steps that CMS has taken to prevent those conflicts.
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News
Audit unearths posthumous payments
By Joe Carlson | September 23, 2010 | Basic Web Basic Web Subscription Details
The CMS probably paid more than $8 million between 2006 and 2007 for healthcare services rendered after the patients' deaths, a federal audit has found.
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Other RAC Resources
 
Reader Exchanges
News
Initial screening could save on audits
October 06, 2011 | Basic Web Basic Web Subscription Details
My question is, how much of the recovery included simple coding mistakes—i.e. duplicate lines etc.—that the financial intermediary could have and should have caught?
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News
Limited success expected for RACs
January 13, 2011 | Basic Web Basic Web Subscription Details
It will be interesting to see how this one works out. Most recovery audit contractors are selected via lowest-priced bids. Fees paid to RACs are very low; waiting for payment may cause budget issues for RACs.
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