CMS issues report on RAC demonstration

CMS issues report on RAC demonstration

According to the recently released report on the Medicare Recovery Audit Contractor (RAC) three-year demonstration program, RACs recouped $992.7 million in overpayments to providers, while $37.8 million in underpayments were repaid to providers.

Of the overpayments, 85% were collected from inpatient hospital providers, 6% from inpatient rehabilitation facilities, and 4% from outpatient hospital providers. After expenses, appeals, and underpayments repaid to providers, the program returned $693.6 million to the Medicare Trust Fund. The report also outlines lessons learned during the demonstration and improvements the Centers for Medicaid & Medicare Services (CMS) will make to the permanent program that, at press time, was scheduled to roll out summer 2008. While hospice and home health providers were not included in the demonstration project, they are expected to be included eventually in the permanent program. To download a copy of the report, go to: www.cms.hhs.gov/RAC/Downloads/RAC_ Demonstration_Evaluation_Report.pdf.