CMS to Expand RAC-Style Audits, Double Projected Recoveries

Written by Leigh Page | March 11, 2010

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CMS and other federal agencies will expand use of payment recapture audits, currently used by recovery audit contractors, and thereby double the amount of recovered costs previously projected, according to a release by the White House.

By offering financial incentives to private auditors such as RACs to root out improper payments, payment recapture audits are thought to be more effective than lump-sum payments.

This action was carried out in a presidential memorandum to all federal agencies. The change is projected to yield at least $2 billion in the next three years, or double the amount of recovered costs previously projected.

In addition, the White House declared its support of the Improper Payments Elimination and Recovery Act, which expands the ability of government agencies to use recaptured payments to fund auditing.

Read the White House release on healthcare fraud and abuse.

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