RACs discover $371 million in improper Medicare payments
Healthcare Auditing Weekly, March 4, 2008
Recovery Audit Contractors (RACs) uncovered more than $371 million in allegedly improper Medicare payments in 2007, according to a CMS report.
RACs are auditors working with CMS as part of a demonstration project in three states: California, New York, and Florida. While RACs found both overpayments and underpayments, 96% of the improper payments were overpayments.
The demonstration project has come under fire because RACs receive payment based on the amount of the improper payments they correct for both overpayments and underpayments. Critics of the program have accused RACs of falsely finding overpayments.
In spite of the criticism, the program was expanded to three additional states last year.
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