Status Report on the Use of Recovery Audit Contractors (RACs) In the Medicare Program

 “Original” Medicare, also known as the Medicare Fee-For-Service (FFS) program, is a large and multifaceted program with a number of payment systems. Over one billion Medicare claims are processed each year. Inadvertent errors can account for billions of dollars in improper payments each year. Improper payments include both underpayments and overpayments. The Improper Medicare FFS Payments Report1 for November 2007 estimates that 3.9 percent of the Medicare dollars paid did not comply with one or more Medicare coverage, coding, billing, or payment rules. This equates to $10.8 billion in Medicare FFS overpayments and underpayments.

To view the whole article about the use of Recovery Audit Contractors (RAC’s), please visit http://www.cms.hhs.gov/RAC/Downloads/2007 RAC Status Document vs1.pdf.

For questions regarding Regulatory Compliance, please email us at: infoformation@signethealth.com