What is a RAC Audit?
The Medicare Modernization Act of 2003 established the Medicare Recovery Audit Contractor (RAC) program as a demonstration program to identify improper Medicare payments – both overpayments and underpayments. RACs were paid on a contingency fee basis, receiving a percentage of the improper overpayments and underpayments they collect from providers.
You want the plain English version, right?
Here it is:
RAC Audits are a way for Medicare to take money back from you.
Yes, it is that simple.
Here are some scary facts:
- RAC auditors work on commission only (they get anywhere from 9% to 12.5% of everything they collect from you).
- RAC auditors can go back as many as 36 months.
- The burden of proof is on you!
Why Do You Care?
As mentioned above, RAC Auditor’s incentive is to find fault in your files.
Additionally, once they find one bad file, think they’ll start digging deeper into your history? Ever hear the term “low hanging fruit”?
You have to do everything you can to protect yourself.
As one would expect, the RAC audit process is complicated.
There are many deadlines that YOU have to meet. One slip up and you lose.
RACGuru is here to help you trudge through the crazy RAC process with information, tips and tools to give you every advantage you need to win.