CMS to Delay RAC Project

The Centers for Medicare and Medicaid Services (CMS) announced last November its intentions to undergo an anti-fraud demonstration project. After receiving enormous opposition from providers, CMS has decided to delay the project.

This project would have allowed Recovery Audit Contractors (RACs) to review claims before they were paid. The RACs would focus particularly on seven states which are notorious for submitting for high rates of improper payments. Those states are California, Florida, Illinois, Louisiana, Michigan, New York, and Texas. The proposed expansion of the RAC is intended to lower Medicare’s error rate by preventing improper payments. Traditionally, actions have been focused retrospectively, by looking for improper payments after they have occurred.

CMS has stated they will only provide 30 days’ notice before they commence this demonstration project.

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