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Coming Soon to All Medicare Providers:
RAC Delayed...but Not for Long!

         Although the Recovery Audit Contractor (RAC) program  initiated by the Centers for Medicare and Medicaid Services (CMS) has suffered a slight delay, the program may very well be back up and running by February of 2009.  This temporary halt to the work of the RAC contractors is the result of a protest filed by two unsuccessful bidders.  But the government is due to issue its decision regarding this protest by early February.  So while you have been given a temporary reprieve, don't expect RAC to stay away from your door for long - especially as Indiana is first in line for the RAC contractors to come knocking.

         The RAC program will affect providers of all types - hospitals, physician practices of all sizes (from solo practitioners to large, multi-specialty practices), nursing homes, hospice programs, home health providers, laboratories, ambulance service providers, and durable medical equipment suppliers.  Any provider or supplier that bills Medicare Parts A or B for services or items is fair game for the RAC contractors.  

         When the RAC contractor contacts you, you won't have very much time to respond - only 45 days to submit the requested records or your claims are automatically denied.  And if a claim is denied, you must be prepared to begin the appeal process immediately.  A failure to act within 30 days will result in CMS withholding amounts from future reimbursements. 

         The professionals at Ice Miller can help you take a proactive approach to the coming of the RAC contractor in a number of ways.  We can help you focus in on the types of claims the RAC contractor is most likely to survey so that you can be better prepared to respond fully and promptly.  We can assist you with compliance reviews so that you can start correcting any problem areas now.  And we can help you with appealing unfavorable determinations.

         The RAC process promises to be complicated and costly for providers, and it is not going to go away.  An organized process for responding to the RAC contractor's requests and findings is crucial.  Contact us now, before the RAC contractor is at your door.

         If you have any questions, please contact Margaret Emmert, Myra Selby or your Ice Miller attorney.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice.  The reader must consult with legal counsel to determine how laws or decisions discussed herein apply to the reader's specific circumstances.

Copyright (c) 2009 Ice Miller LLP and its licensors. All rights reserved.

 

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