New RAC Program Contractors Named by CMS

October 20, 2008

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The Centers for Medicare and Medicaid Services (CMS) has begun the initial phase-in of its Recovery Audit Contractor (RAC) program by announcing the four new contractors that will administer the program. Each RAC will be responsible for identifying overpayment and underpayments in approximately one-quarter of the country, according to the agency.

The contractors are:

  • Diversified Collection Services (Livermore, CA), covering the states of Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont
  • CGI Technologies and Solutions (Fairfax, VA), covering Indiana, Michigan, and Minnesota
  • Connolly Consulting Associates (Wilton, CT), covering Colorado, Florida, New Mexico, and South Carolina
  • HealthDataInsights (Las Vegas, NV), covering Arizona, Montana, North Dakota, South Dakota, Utah, and Wyoming

Additional states will be added to each RAC region in 2009, according to the CMS. The RAC program, initially pilot-tested in several states, was created to identify and correct improper Medicare payments paid to healthcare providers in fee-for-service Medicare. In July, the CMS reported the demonstration project recovered $1 billion in improper payments made since 2005.

HHS is required to make it a permanent, national program in all 50 states by Jan. 1, 2010. Read more about the program.

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