Long-Term Care

Judge blocks new RAC contracts

MDS 3.0 Insider, September 4, 2014

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The controversy around Medicare's Recovery Audit Contractor program continues; a judge has ruled that the government cannot award new RAC contracts until disputed payment terms are resolved.

Long-term care providers have been watching the RAC contract process because current audits have been largely put on hold. CMS has indicated that the awarding of new contracts is one of the steps toward re-starting audits, which providers have protested are too aggressive and have led to a huge backlog of appeals. Citing the continued delay in awarding new Recovery Auditor contracts, CMS restarted some reviews in August.
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