New RAC Appointments on Hold Until February

The Recovery Audit Contractors (RAC) program has proven to be successful in returning dollars to the Medicare Trust Funds and identifying monies that need to be returned to providers. It has provided CMS with a new mechanism for detecting improper payments made in the past, and has also given CMS a valuable new tool for preventing future payments. Section 302 of the Tax Relief and Health Care Act of 2006 makes the RAC Program permanent and requires the Secretary to expand the program to all 50 states by no later than 2010. By 2010, CMS plans to have 4 RACs in place.

Due to protest of the RAC Awards CMS is required to impose an automatic stay in the contract work of the four Recovery Audit Contractors (RAC) program. This action is the result of protests filed by two unsuccessful bidders for the RAC program with the Government Accountability Office (GAO). An automatic stay will stop work for all four RAC regional awards until a determination is made by GAO, as required under provisions of the Competition and Contracting Act of 1984 (CICA). Under the CICA, GAO has 100 days to issue its decision, which means a decision would be due in early February. The four RAC contracts, and any work under those contracts, are on hold pending the outcome of the protests.