Revenue Cycle

CMS issues letter to state Medicaid directors on RAC expansion

Recovery Auditor Report, October 14, 2010

As previously discussed, CMS has been laying groundwork for the expansion of RACs into Medicaid. On October 4, 2010, CMS published a letter that was sent out to state Medicaid directors as part of a series of letters “intended to provide preliminary guidance on the implementation of the Affordable Care Act (ACA).” According to CMS, this letter provides initial guidance on section 6411 of the ACA, Expansion of the RAC program, which amends 1902(a)(42) of the Social Security Act (the Act), requiring states to establish programs to contract with RACs to audit payments to Medicaid providers by December 31, 2010.

View the CMS letter here:
http://www.cms.gov/smdl/downloads/SMD10021.pdf

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