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CMS's Recovery Audit Contractor Initiative

The Medicare Prescription Drug Improvement and Modernization Act of 2003, commonly referred to as the Medicare Modernization Act (MMA), included a provision that required the Centers for Medicare & Medicaid Services (CMS) to demonstrate the applicability of audit contractors to identify overpayments and underpayments, and recoup overpayments made by the Medicare program. The following questions and answers are provided to illustrate the CMS initiative of audit contractors.

What is an "RAC"?

RAC is the abbreviation for "recovery audit contractor." The purpose of an RAC is to identify overpayments and underpayments made by the Medicare program under Part A and Part . . . [Click for More]