Senator Faults CMS for Postponing Medicaid RACs

Sen. Orrin Hatch (R-Utah), the top Republican on the Senate Finance Committee, chastised CMS for postponing implementation of a recovery audit contractor program from Medicaid, according to a report by the Hill.

The healthcare reform law called for implementation of Medicaid RACs by April 1 2011, but in February, CMS announced it would postpone the start-up indefinitely. "I am sincerely concerned about the helter-skelter approach being taken to implement the new healthcare law's tools to address improper payments," Sen. Hatch said in a committee hearing.

Explaining the delay, a CMS official told the finance committee the agency is having "extensive interaction" with state Medicaid officials and is working to make the program successful.

The CMS official said the reform law made significant changes to the fraud fighting programs, such as:
• Opting for fraud prevention rather than paying suspicious claims and investigating later.
• Concentrating on "bad actors" rather than using a blanket approach.
• Using technology to fight fraud.
• Devising new performance measures.
• Launching public-private partnerships.

Read the Hill report on RACs.

Read more coverage on Medicaid RACs:

- Medicaid RAC Implementation Date Postponed

- New Website to Show Status of Medicaid RACs







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