Recovery Audit Failure

Satisfactory Essays
The Recovery Audit Contractor (RAC) program was created by the Medicare Modernization Act of 2003 and made permeant By the Tax Relief and Health Care Act of 2006. These private contractors are on consignment to identify and recover improper Medicare payments to healthcare providers. The American Hospital Association (AHA) feels the RAC audits are inaccurate, duplicative, increase hospital administrative burden, and are time consuming and costly to appeal. The AHA further asserts the RACs have no consequences to their poor performance. The healthcare policy surrounding the RACs is complex. The overriding issue is Medicare fraud and government waste. Both are high priority topics. The AHA reports that two-thirds of the medical records review
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