CHA News Article

CMS Withdraws RAC Program Request for Quotes
Current RACs to continue audits through Dec. 31

The Centers for Medicare & Medicaid Services (CMS) announced last week that it has withdrawn its current request for quotes for the next round of recovery audit contractor (RAC) contracts. CMS has stated that it will update the RAC program’s statement of work and issue new requests for proposals. Until then, current RACs will continue auditing through at least Dec. 31. In May, a Federal Claims Court ruled to prohibit CMS from proceeding with contracts under its original requests for quotation, after a March ruling from the U.S. Court of Appeals that proposed new RAC contracts violate contracting requirements.

Hospitals are reminded to reach out to their members of Congress to request that they cosponsor The Medicare Audit Improvement Act, H.R. 2156, to address the inefficiencies and misaligned incentives within the current RAC program. Gathering cosponsors is an important step toward advancing the legislation, and currently only nine members of the California delegation have signed on. CHA’s letter of support is attached.