CMS Changes Payment Terms For Medicare Recovery Audit Contractors

The federal Centers for Medicare & Medicaid Services (CMS) has changed payment terms for its Medicare Recovery Audit Contractors (RACs) as part of an effort to reduce the burden on provider organizations and increase transparency in the program. Rather than invoicing CMS for contingency payment at the time of collection for improper overpayments from provider organizations, the audit contractors must wait to invoice CMS until after the alleged improper claim clears the second level of appeal. This change goes into effect for the new contracts slated to begin in 2015.

Medicare launched the RAC program in 2008 as a tool . . .