CMS Announces New RAC Contractors

As we reported in July, the Centers for Medicare and Medicaid Services (CMS), placed all the activities of four existing Recovery Audit Contractors (RAC) contractors on hiatus as a result of the upcoming award of new RAC contracts.This hiatus was to allow for a smooth transition to the new RAC contractors, including the single, national RAC contractor that will focus on claims for DMEPOS, Home Health, and Hospice services when the new contracts are awarded.

On Monday, October 31 CMS announced the awarding of the new contracts for the next phase of the RACs. The new single RAC for DMEPOS, Home Health and Hospice is Performant Recovery, Inc. Performant Recovery recently acted as the RAC for Jurisdiction A.

CMS is confident that the awarding of the new RAC contracts “will continue to reduce provider burden, enhance program oversight, and increase transparency in the program.” It is not known when the new contracts will take effect and when Performant will begin its duties as the single RAC for O&P claims.

AOPA will keep you posted when more information is made available.