BC Advantage - 2007 Issue 9

CMS' New Bounty Hunter Program - RAC ATTACK

Since February 2007, there have been some important developments in the RAC audit demonstration project. The RAC demonstration project is currently being conducted in three states: California, Florida, and New York. The sole purpose of the project is to identify incorrect payments made by Medicare to hospitals and other providers. To date, the vast majority of the findings have been overpayments ($54 million over 18 months), with underpayments reported at a much lesser rate ($2 million over the same period of time).BACKGROUNDThe RAC demonstration project began in 2005 and was scheduled to remain operational in the three states...

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