Medicaid RAC Implementation Date Postponed

Citing operational issues for states, CMS has postponed its April 1 implementation date for Medicaid recovery audit contractors and has not yet identified a new date, according to a release from CMS.

The agency will announce the new implementation date when it publishes a final rule for Medicaid RACs, expected later this year.

The healthcare reform law authorized Medicaid RACs. Under a proposed rule issued in November, states were expected to submit plans for Medicaid RAC programs by Dec. 31, 2010 and fully implement their programs by April 1, 2011. The comment period for the proposed rule ended on Jan. 10.

The CMS announcement was brief. "Out of consideration for State operational issues and to ensure States comply with the provisions of the Final Rule, we have determined that States will not be required to implement their RAC programs by the proposed implementation date of April 1, 2011," the agency stated. "Instead, when the Final Rule is published, it will indicate the new implementation deadline. We anticipate the final rule will be issued later this year."

Read the CMS release on Medicaid RACs.

Read more coverage of Medicaid RACs.

- 4 Ways Medicaid RACs Could Differ From Medicare RACs

- 6 RAC Issues For Hospitals in 2011


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