Corporate Compliance

Members of Congress request GAO study on RACs program

Healthcare Auditing Weekly, July 22, 2008

Four congressmen and one congresswoman are asking the Government Accountability Office (GAO) to conduct a study on the private Medicare Recovery Audit Contractor Program.
 
In a letter to Hon. Gene Dodaro, acting U.S. Comptroller General, Congressmen  John Dingell (D-MI), Charles Rangel (D-NY), Pete Stark (D-CA), and Frank Pallone (D-NJ), and Congresswoman Lois Capps (D-CA) stated congress received several reports of problems with the RAC initiative during the pilot program, which began in 2004.
 
Problems included:
  • Poor communication from RAC contractors
  • Unqualified personnel, review practices inconsistent with Medicare policies
  • A contingency fee that was inherently prone to contractor abuse
Although many of these problems have been addressed by CMS, the politicians said in the letter, “given the substantial challenges to that arose during the pilot program, and notwithstanding the significant changes to the program going forward, we believe it is important that the RAC experience be reviewed.”
 
They are asking specifically that the following changes be incorporated in the nationwide rollout in 2010:
  • Provider outreach and actions the agency has taken to prevent future improper payments in areas identified by RACs
  • Coordination and interaction with other Medicare contractors
  • CMS oversight of auditing efforts
  • CMS oversight of interaction between the recovery audit contractors and providers done to quantify and minimize the total burden of compliance.

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