Recently, CGI Federal, the RAC for Region B, added two new home health issues to its CMS-approved issues list. In the past, RACs have primarily focused their attention on hospitals due to the high bounty they receive for correcting improper claims. However, as displayed in the 2011 RAC statement of…
Articles Posted in Recovery Audit Contractors (RACs)
CMS Reminds Providers to Prepare and Maintain Legible Medical Records
Recently, the Centers for Medicare and Medicaid Services (CMS) released an MLN Matters article stressing the importance of providers preparing and maintaining legible medical record documentation. CMS contractors are required to deny a provider’s claim for repayment if the item or service is not reasonable and medically necessary. Submitting legible…
OIG Releases Report Addressing Improvements Needed at the ALJ Appeal Level
Recently, the Office of Inspector General (OIG) released a report focusing on various areas of concerns pertaining to Medicare appeals at the Administrative Law Judge (ALJ) level. In 2005, the responsibility for conducting ALJ appeals was transferred from the Social Security Administration to the Department of Health and Human Services…
CMS Releases DME Face-to-Face Encounter Final Rule
On November 1, 2012, the Centers for Medicare and Medicaid Services (CMS) published its final rule detailing the durable medical equipment (DME) face-to-face encounter requirements. In response to the various comments submitted, CMS made several key revisions to the proposed rule that was released on July 6, 2012. The DME…
AHA Files Lawsuit Against HHS Regarding Full Part B Reimbursement
On November 1, 2012, the American Hospital Association (AHA), along with four hospitals, filed a lawsuit against the U.S. Department of Health and Human Services (HHS) in the U.S. District Court for the District of Columbia. The lawsuit, which names as the defendant Kathleen Sebelius in her official capacity as…
AHA Sends Letter to OIG Urging Contractor Reform
The American Hospital Association (AHA) sent a letter to the Department of Health and Human Services Inspector General Daniel Levinson on October 24, 2012, urging the Office of Inspector General (OIG) to focus on inappropriate claim denials by Recovery Audit Contractors (RACs). The letter stresses that RAC effectiveness needs to…
Medicare Audit Improvement Act of 2012 Proposes to More Heavily Regulate Audit Contractors
Representatives Sam Graves (R-MO), Todd Akin (R-MO), Billy Long (R-MO), and Adam Schiff (D-CA) introduced a bill to Congress on October 16, 2012 which proposes to reduce the Medicare contractor audit burden on hospitals. The bill, called the Medicare Audit Improvement Act of 2012 (Act), proposes changes to the ways…
HDI Posts First Pre-Payment Review Issue
The Region D Recovery Audit Contractor (RAC), HealthDataInsights (HDI), has posted a new issue which states that it will begin pre-payment review of medical necessity for MS-DRG 312 (syncope and collapse). The issue is part of the pre-payment review demonstration program, and is the first approved issue posted as part…
CMS to Conduct Special Open Door Forum on Medicare’s Prior Authorization for Power Mobility Devices Demonstration
On Wednesday, the Centers for Medicare & Medicaid Services (CMS) will host a Special Open Door Forum (ODF) to provide healthcare suppliers and providers an opportunity to learn more and ask questions about Medicare’s Prior Authorization for Power Mobility Devices Demonstration Program. CMS’ new demonstration program, which applies to orders…
Ninth Circuit Decides RAC Reopening is Not Subject to Appeal
On September 11, 2012 the United States Court of Appeals for the Ninth Circuit held that a Recovery Audit Contractor’s (RAC’s) initial decision to reopen a claim is not subject to judicial review. The case, Palomar Medical Center v. Sebelius, involved Palomar Medical Center arguing that a RAC has to…