Audits: RACs Corrected Over $92 Million in Improper Payments Last Year

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

Article Overview

This article reviews a CMS report on nationwide recovery audit contractor activity, including the overall volume of incorrect Medicare payments found and returned during fiscal year 2010. It is relevant to physicians, billing staff, compliance teams, and other healthcare administrators who want a high-level view of the types of payment issues RACs were identifying and the general focus of CMS recovery auditing efforts.

Why This Topic Matters

The article helps readers understand where Medicare payment reviews were concentrating and why practices may be at risk for audit findings. It also highlights the broader compliance significance of underpayments and overpayments in the recovery audit process.

Article Sections

  1. CMS report overview

    Introduces the CMS report and summarizes the scope of recovery audit contractor activity during the reporting period.

  2. Payment correction totals and context

    Describes the overall amounts identified as improper payments and explains the broader program context for these findings.

  3. How RAC incentives are described

    Explains the article’s discussion of how recovery audit contractor compensation relates to identified payment errors.

  4. Areas where RACs identified issues

    Provides a high-level look at the categories of claims and billing situations flagged by RACs in the report.

  5. Specific issue categories noted in the report

    Summarizes the broad types of inpatient and billing scenarios highlighted as problem areas, including service duration, diagnosis coding, and separately billed items.

What You Will Learn

  • What the CMS recovery audit report covered
  • How RAC activity affected Medicare payment corrections during fiscal year 2010
  • Which broad claim categories were highlighted as problem areas
  • Why the article is relevant for compliance and billing review

Who Should Read This

  • Physicians
  • Medical billers
  • Coding professionals
  • Practice managers
  • Compliance staff
  • Healthcare administrators

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