Revenue Cycle

CMS releases Medicaid RACs final rule

Medicare Update for CAHs, October 5, 2011

In February, the Centers for Medicare and Medicaid Services (CMS) delayed its expected April 1 implementation of the Medicaid recovery audit contractors (RACs) final rule until an unspecified time later this year.

That date finally came, as CMS released its Medicaid RACs final rule on September 21, 2011.

The new initiative, modeled after the Medicare RAC program, aims to fight waste and fraud in Medicaid and will save taxpayers an estimated $2.1 billion over the next five years, according to a press release from the Department of Health and Human Services (HHS). About $900 million will be returned to states.

“Today we are building on an already successful program that targets improper payments in our health care programs and recovers those dollars, making Medicare and Medicaid more reliable and responsible,” HHS Secretary Kathleen Sebelius said in the press release today. “We simply can’t afford to see even one penny of our health care dollars wasted and expanding this program will help us reach that goal.”

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