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Healthcare Economics

Medicare Recovery Audit Contractors (RAC)

 In 2003, the Department of Health and Human Services (HHS) created a demonstration project to identify and correct improper payments to the Medicare Fee for Service program. Recovery Audit Contractors (RACs) evaluated suppliers and providers to assess if proper payment was being made by Medicare to these institutions.

The demonstration took place in New York, Massachusetts, Florida, South Carolina and California and ended on March 27, 2008. Subsequent to the demonstration, HHS decided to make this program permanent and roll it out to all states beginning early 2009 with a complete rollout by January 2010.

RAC Resources

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