decisionhealth Newsletters, Part B News - 2013 Issue 4 (April)
CMS to add fifth RAC for home health, DME, but physicians could see more audits
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Article Overview
This article explains upcoming changes to the Medicare Recovery Audit Contractor (RAC) program and how they may affect providers beyond the main home health and durable medical equipment focus. It is relevant to physician practices, home health agencies, DME suppliers, compliance staff, and revenue cycle teams who monitor audit activity, appeals involvement, and documentation readiness. The piece also covers broader administrative changes such as contractor responsibilities, regional realignment, appeal participation, and internal audit planning.
Why This Topic Matters
Changes to RAC structure and scope can alter audit exposure, appeal activity, and documentation demands across multiple provider types. Organizations that bill Medicare need to understand how these shifts may affect compliance monitoring and preparation for reviews.
Article Sections
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Recovery auditor workload changes
Describes planned changes to the RAC program, including added contractor capacity and how audit focus may be redistributed across provider types and regions.
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RACs required at some appeals
Summarizes changes related to RAC participation in the appeals process and broader expectations for administrative review support.
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Audit preparation and documentation review
Covers general recommendations for monitoring audit topics, reviewing records internally, and maintaining documentation readiness.
What You Will Learn
- How the RAC program is being reorganized
- Which provider categories are expected to see increased audit attention
- What the article says about RAC involvement in appeals
- Why documentation and internal audit planning remain important
- How audit volume and review timelines may change
Who Should Read This
- Physician practices
- Home health agencies
- Durable medical equipment suppliers
- Medicare compliance staff
- Revenue cycle professionals
- Billing managers
- Healthcare auditors
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