CMS has announced that beginning on Jan. 3, 2012, Medicare Administrative Contractors will take over the responsibility of issuing demand letters to recoup alleged Medicare overpayments as part of the Recovery Audit Contractor Program, according to an AHA News Now report.
According to a CMS Transmittal, "While [RACs] have been responsible for the issuance of demand letters throughout the demonstration and thus far in the national program, this Change Request shifts the responsibility to the MACs, and reflects the program's desire to increase consistency and efficiency through automation."
Hospitals have complained that untimely RAC demand letters were a major problem in the RAC program. In a May survey by the American Hospital Association, 52 percent of hospital respondents indicated that untimely demand letters were the top problem with the program.
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According to a CMS Transmittal, "While [RACs] have been responsible for the issuance of demand letters throughout the demonstration and thus far in the national program, this Change Request shifts the responsibility to the MACs, and reflects the program's desire to increase consistency and efficiency through automation."
Hospitals have complained that untimely RAC demand letters were a major problem in the RAC program. In a May survey by the American Hospital Association, 52 percent of hospital respondents indicated that untimely demand letters were the top problem with the program.
Related Articles on Recovery Audit Contractors:
Medicare RACs Have Collected Estimated $575M in Overpayments Since Oct. 2009Survey Finds 73% of Hospitals Agree RACs Reduce Fraud; 60% Say Process Unfair
Medicaid RACs Can Save Up to $10B, PRGX CEO Says