Health Information Management

News: MACs to take over demand letter submission from RACs

CDI Strategies, August 18, 2011

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In January facilities should expect to receive Recovery Audit Contractors (RAC) demand letters not from the RAC itself but from their Medicare Administrative Contractor (MAC), according to CMS Transmittal 192. The change reflects CMS’ “desire to increase consistency and efficiency through automation,” the Transmittal states.

The American Hospital Association (AHA) urged CMS to resolve confusion and timing issues with the RAC recoupment letters. In May, 52% of hospital respondents indicated that untimely RAC demand letters were the top problem with the RAC program, according to an August 9 article in AHA’s News Now.

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