2/13/2014

A bipartisan group of 111 members of Congress sent a letter to HHS Secretary Kathleen Sebelius expressing concerns with the Medicare Recovery Audit Contractor program and urging reform. The letter notes that the RAC payment system provides an incentive for auditors to deny claims even when they are correct, placing "a huge administrative burden" on providers who appeal denied claims. "An alternative payment arrangement with auditors should be considered by the Congress and CMS in order to ensure RACs are not improperly incentivized to deny claims for profit and to ensure they focus on prevention of errors," the letter states.

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