Revenue Cycle

CMS releases updated improper payment figures, top regional RAC issues

Medicare Update for CAHs, August 10, 2011

CMS released a Recovery Audit Contractor (RAC) update on July 15 that details the amount of overpayments and underpayments identified in the most recent quarter, as well as the total amount identified since the start of the national program.

In the Q3 FY 2011 update, CMS identified $233.4 million in overpayments and $55.9 million in underpayments with a total correction amount of $289.3 million – more than $100 million more than in the previous quarter. The report shows that the figures identified by CMS continue to grow drastically; in the second quarter of fiscal year (FY) 2011, CMS identified $162 million in overpayments and $22.6 million in underpayments, with a total of $184.6 million in corrections.

While this brief CMS report is essentially self-explanatory, the figures within it are certainly telling, according to Kimberly Anderwood Hoy, JD, CPC, director of Medicare and compliance for HCPro, Inc.

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