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CMS Presses Pause on RAC Reviews

On February 18, 2014, the Centers for Medicare and Medicaid Services (CMS) announced that it had suspended the ability of Recovery Audit Contractors (RAC) to request documents for claims reviews until CMS has had an opportunity to finish the procurement process for new RAC contracts. Under the Recovery Audit Program, RACs are charged with identifying improper Medicare payments. The Program has long been a source of controversy, in part because RACs are paid a contingent fee based on a percentage of claims they deny. Currently, this fee ranges from 9% to 12.5%.

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