Health Information Management

CMS settles RAC contract negotiations and prepares to begin expansion March 1

HIM-HIPAA Insider, February 17, 2009

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The Medicare Recovery Audit Contractor (RAC) program is moving full speed ahead now that CMS has lifted its stop work order, according to a February 6 announcement on the CMS Web site. CMS had temporarily halted the program due to contract protests from PRG Schultz USA, Inc. and Viant, Inc.—two companies that had unsuccessfully bid to participate in the program. These companies will now serve as subcontractors for the permanent RAC program as part of the settlement agreements. PRG-Schultz and Viant will have different responsibilities—including possible claim review—in the various regions.

CMS also revised its RAC expansion schedule, according to the new "RAC Phase In Map" posted February 10 to the CMS Web site. The first phase will begin March 1, and the second phase will begin August 1.



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