decisionhealth Newsletters, Coder Pink Sheets - 2007 Issue 11 (November)
Medicare ‘bounty hunters' target upcoding, documentation problems
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Article Overview
This article explains the Medicare Recovery Audit Contractor (RAC) program, why it was expanded, and how it affects practices through reviews of claims for improper payments. It is aimed at coders, interventionalists, and compliance staff who need a broad understanding of audit risk areas such as documentation quality, coding accuracy, and medical necessity oversight.
Why This Topic Matters
It helps readers understand a Medicare audit program that can trigger reviews of billing practices and documentation, making it relevant for compliance preparation and internal auditing.
Article Sections
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Program overview and expansion
Introduces the Medicare RAC program, its origins, and the federal actions that expanded it beyond the pilot phase. It also notes the program’s nationwide rollout timeline and related CMS reporting.
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How they operate
Describes the general workflow used by RAC reviewers to analyze claims, request records, and determine whether payments appear proper. The section focuses on the audit process rather than specific clinical services.
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Improper payment definitions and practice protection
Summarizes the broad categories CMS uses when identifying improper payments and explains the need for internal review. It highlights compliance themes such as documentation quality, coding accuracy, and medical necessity.
What You Will Learn
- What the RAC program is and why it matters to Medicare billing.
- How RAC audits generally review claims and medical records.
- Which broad billing and documentation issues are commonly scrutinized.
- Why internal audits and medical necessity review are important for compliance.
Who Should Read This
- Medical coders
- Interventionalists
- Compliance staff
- Revenue cycle teams
- Practice administrators
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