CHA News Article

CMS Extends Current RAC Contracts
HDI will likely resume audits soon

The Centers for Medicare & Medicaid Services (CMS) has announced a contract modification allowing the current recovery audit contractors (RACs), including Health Data Insights (HDI) for California in Region D, to restart automated claim denials and limited medically complex reviews that had previously expired June 1. On Sept. 2, a federal court of appeals enjoined CMS from awarding new contracts pending an appeal by CGI, an incumbent RAC. CHA expects it could be a significant period of time before that appeal is heard in the courts and, therefore, the contract modification allowing HDI to continue to operate in California may last for a number of months. CHA will keep members informed of RAC activity through CHA News and through the RAC email distribution list. Members who have not signed up to receive CHA updates may do so at and indicate that they wish to be added to this members-only distribution list.