Section 302 of the Tax Relief and Health Care Act of 2006 makes the Recovery Audit Contractor (RAC) Program permanent and requires the Secretary to expand the program to all 50 states by 2010.
The Centers for Medicare and Medicaid Services (CMS) has four RACs in place, with each RAC responsible for identifying overpayment and underpayments in approximately one quarter of the country.
Physicians are encouraged to monitor their RAC's website, as RACs are required to post the issues on which they are focusing their audits. Physicians should respond to a RAC request right away if they realize that they will be unable to meet the RAC-requested deadline. RACs are not able to look at claims older than October 1, 2007.
The CMS RAC website also provides a lot of valuable information.