Revenue Cycle

Senate health reform bill expands RAC program to Medicaid, Medicare Parts C and D

Recovery Auditor Report, December 10, 2009

Hold on to your stethoscopes, the Senate Healthcare Reform Bill is expanding the RAC program.
 
Specifically, Section 6411 of the Patient Protection and Affordable Care Act (H.R.3590,p. 1777–1783) broadens the current RAC program to cover Medicare Part C and D as well as the Medicaid program—and all by December 31, 2010.
 
Similar to the current Medicare RAC program, the Medicaid RACs would be paid by contingency fee to identify under- and overpayments, and would recoup those overpayments. States would contract with one or more RACs to seek out payment errors, and each state must have “an adequate process for entities to appeal any adverse determination made by such contractors,” according to the Healthcare Reform Bill.

“Certainly we will need some additional details on how this will work,” says Kimberly Anderwood Hoy, JD, CPC, director of Medicare and compliance for HCPro, Inc. “The complexity of the individual state Medicaid plans will make this difficult to coordinate at the federal level.”

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