RAC payment recovery program to roll out nationwide

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Note:  The following article synopsis was NOT provided by HCPro. It was created by Find-A-Code/innoviHealth.

Article Overview

This article explains the nationwide rollout of the Medicare Recovery Audit Contractor (RAC) program and why it matters for physician practices, coders, and compliance staff. It covers the program’s background, how audits work at a high level, and broad preparation steps such as internal auditing, documentation review, and compliance planning. The article also discusses common problem areas identified in Medicare payment recovery reviews and highlights service categories that have been associated with improper payment findings.

Why This Topic Matters

It helps healthcare organizations understand the scope of Medicare payment recovery oversight and prepare for external review by strengthening documentation, compliance processes, and internal auditing practices.

Article Sections

  1. Program background and nationwide expansion

    Introduces the RAC program, its Medicare focus, and the policy developments that expanded it beyond the original pilot states. Summarizes the historical and regulatory context for the program’s growth.

  2. How the program operates

    Describes the general review process used by RACs and the types of payment issues they look for. Also notes the role of data analysis and medical record review in audit activity.

  3. What you can do to prepare your practice

    Outlines broad preparation steps for practices, including internal auditing, documentation review, and compliance program upkeep. Emphasizes readiness for external review and internal monitoring.

  4. Top 7 upcoded services and corresponding reasons

    Presents a summary table of service categories that were frequently identified in improper payment analyses. The section relates these services to Medicare fee-for-service review activity and the types of concerns raised by auditors.

What You Will Learn

  • How the Medicare Recovery Audit Contractor program expanded nationwide
  • What types of payment issues are commonly reviewed in RAC activity
  • Why documentation and compliance programs are important for audit readiness
  • Which general service categories have been associated with improper payment reviews

Who Should Read This

  • Medical coders
  • Physicians
  • Practice managers
  • Compliance staff
  • Healthcare billing personnel

Codes Discussed


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