Medicare Recovery Audit Contractors (RACs) collected $797.4 million in overpayments during Fiscal Year (FY) 2011, the Centers for Medicare and Medicaid Services (CMS) reported recently.
Under the national program, RACs in four regions of the country, as designated by CMS, are paid a contingency fee for identifying overpayments/underpayments in Medicare Parts A and B. They must return any fees for payments that are later determined not to be improper.
NOTE: I have solo medical practice clients who have gone through RAC audits, so nobody is immune from scrutiny. So make sure your billing house is in order!