Over $365 Million in Improper Payments Identified By RACs Since October 2009 CMS recently reported that RACs have identified $312.2 million in overpayments from October 2009 through March 2011. During the same period, $52.6 million in underpayments were identified. While these figures are well below the over $1 billion in…
Articles Posted in Audit
All Four RAC Regions Have Recently Added Additional Issues Approved for Review in RAC Audits
DCS Healthcare: The Region A RAC added three new medical necessity claims to its approved issues list. These claims are: Peripheral/cranial nerve and other nervous system procedures with MCC (MS-DRG 040); ECMO or tracheostomy with MV 96+ hrs or PDX except face, mouth and neck with major O.R. (MS-DRG 003);…
RAC Recovered $237.8 Million in Six-Month Period
Recovery Audit Contractors (RAC) recovered $237.8 million in the six-month period that ended in March. This amount is already three times more than the amount of money recovered in the previous year. According to recent estimates, CMS alleges that the total sum of Medicare improper payments exceeds $47 billion annually.…
Recent RAC Activity
CGI, the Recovery Audit Contractor (RAC) for Region B, recently removed four DRG validation issues from its list. This means that providers in Region B will no longer be subject to RAC audits on these particular procedures. Connolly has added several new RAC issues to its CMS approved list. One…
CMS Announces New Limits on RAC Record Requests
Effective February 14, 2011, CMS has limited the number of records RACs may request when reviewing Medicare claims from Physicians and other practitioners. These requests for medical records, which are used in connection with complex claims reviews, will be limited based on the size of the group/office being audited. If…
New Issues Posted by RACs
Connolly Healthcare, the region C RAC, recently posted 77 new issues eligible for review. Twenty-three of these new issues involve Medical Necessity reviews, several of which include reviews of acute inpatient admissions to validate the medical necessity of short stay admissions. These new approved issues implicate a variety of MS-DRGs,…
CMS Publishes Proposed Rule Regarding Medicaid RAC Activities
The Centers for Medicare and Medicaid Services (CMS) published a proposed rule on November 5 regarding RAC activities for Medicaid programs. Section 6411 of the Patient Protection and Affordable Care Act (PPACA) requires states to contract with one or more Medicaid RACs by December 31, 2010. By that date, states…
Most Recent RAC Activity
The RACs for Regions A, B and C recently added new approved issues for review. The RAC for Region A, DCS Healthcare, added two issues, DRG validation claims and outpatient claims, to its list for providers in Region A states. CGI, the RAC for Region B, added two new issues…
CMS Releases Letter to State Medicaid Directors Regarding Medicaid RACs
On October 4, 2010 the Centers for Medicare and Medicaid Services (CMS) published a letter that was sent to state Medicaid directors as part of a series of letters that will provide guidance for the implementation of provisions of the Patient Protection and Affordable Care Act (PPACA), including the expansion…
American Hospital Association Releases RACTrac Survey
In September the American Hospital Association (AHA) released its RACTrac for the second quarter of 2010. RACTrac is a nationwide survey conducted by the AHA which documents the ongoing Recovery Audit Contractor (RAC) activity. The purpose of the survey is to fill the void of information provided by the Centers…