Recovery Audit Contractor (RAC) protest resolved

CMS announced that the permanent Recovery Audit Contractor (RAC) program is set to begin March 1. The bidding protests filed by Viant, Inc. and PRG Schultz, USA, Inc., which caused a Stop Work order in October 2008, are resolved.

According to the new RAC Phase In Schedule, the program will be implemented in two phases.

The RAC program will begin Aug. 1 in Vermont, New Hampshire, Maine, Massachusetts, Rhode Island, Connecticut (J14) for Part A claims (including Part B of A) and Part B claims in Rhode Island to allow for Medicare Administrative Contractor (MAC) transition. For all other Part B claims, the implementation date is March 1.

By 2010, CMS plans to have 4 RACs in place. Each RAC will be responsible for identifying overpayment and underpayments in approximately 1/4 of the country.