RAC ~ Recovery Audit Contractor
The RAC program has been implemented for all regions. The RAC program is intended:
"...to reduce Medicare improper payments through the efficient detection and collection of overpayments, the identification of underpayments and the implementation of actions that will prevent future improper payments."
The regional RAC for region D is HealthDataInsights. They are contracted to implement audits on payments already made by CMS Medicare to ensure proper payment has been made. If they audit a claim and feel it is an overpayment then they will send out a Demand Letter stating that they have reviewed a certain claim and have determined it to be an overpayment and requests that money be refunded. This is an excerpt from an example letter:
“This letter is to notify you that Medicare has made an overpayment to you for the amount of $_______.
A brief description of the claims associated with this overpayment can be found on the "Overpayment Report" page. In order to correct this overpayment, please refund $_______by xx/xx/xxxx.”
What does that mean to you? If you receive one of these letters and PCC handles your billing, please forward to us as soon as possible. The review process gives 40 days from the date on the letter for us to provide supporting documentation showing why the payment should not be considered as an overpayment. If the supporting documentation is not sent in a timely manner, the amount shown on the letter will be forwarded to Medicare to review to determine if a recoupment will be made on a remittance advice (Medicare Check). Audits can be done on claims with dates of service as far back as October 1st, 2007 currently. After October 1st, 2010 these audits will go back up to three (3) years for the date of service.
What if PCC doesn't currently handle your billing? You should contact us to find out what we will do for you to ensure all of these important issues are managed for you in a timely, efficient, and secure manner.
Contact PCC for your free over-the-phone or onsite consultation.