Nationwide RAC Launched
The Centers for Medicare and Medicaid Services has launched its national recovery audit contractor program as part of its “aggressive new steps to find and prevent waste, fraud and abuse in Medicare.” The new RACs, which will be paid on a contingent basis, soon will begin to contact providers about the program, the CMS said. The 3-year RAC demonstration program in California, Florida, New York, Massachusetts, South Carolina, and Arizona collected more than $900 million in overpayments, according to the CMS. However, the program has drawn strong criticism from physician groups, who have maintained that RAC audits were overly burdensome. The CMS also said it would begin to work directly with beneficiaries to make certain they receive the durable medical equipment or home health services for which Medicare has been billed, and that the items or services were medically necessary.