04.01.2015 Views

Steven Baruch - Health Care Compliance Association

Steven Baruch - Health Care Compliance Association

Steven Baruch - Health Care Compliance Association

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

RACs are coming to<br />

Medicare Advantage,<br />

Part D, and Medicaid<br />

By Gloryanne Bryant, RHIA, RHIT, CCS, CCDS<br />

Editor’s note: Gloryanne Bryant is Regional<br />

Managing Director at HIM Northern California,<br />

Revenue Cycle, Kaiser Foundation <strong>Health</strong><br />

Plan Inc & Hospitals. Gloryanne may be contacted<br />

by e-mail at Gloryanne.h.bryant@kp.org.<br />

Yes, the Recovery Audit Contractors<br />

(RACs) are coming to Medicare<br />

Advantage Part C, Part D, and<br />

Medicaid under the oversight of the Centers<br />

for Medicare and Medicare Services (CMS).<br />

Section 1902(a)(42)(B)(i) of the Social<br />

Security Act, requires states to establish programs<br />

to contract with one or more Medicaid<br />

RACs for the purpose of identifying underpayments<br />

and recouping overpayments under<br />

the state plan, and any waiver of the state<br />

plan, with respect to all services for which payment<br />

is made to any entity under such plan or<br />

waiver. Keep in mind that the three-year RAC<br />

demonstration program that was launched in<br />

California, Florida, and New York in 2005<br />

identified roughly $1 billion in Medicare overpayments,<br />

according to CMS reports.<br />

State Medicaid programs will have to contract<br />

with one or more RACs to identify underpayments<br />

and overpayments (and recoup overpayments),<br />

including in-state waiver plans.<br />

Medicaid RAC compensation will be linked<br />

to the payment inaccuracies they are able to<br />

identify, both over- and under-payments. The<br />

Medicaid RAC audits will be separate from<br />

the Medicaid Integrity Program (MIP) audits<br />

that are already being completed by Medicaid<br />

Integrity Contractors (MICs) in many states.<br />

Deborah Taylor, Director and Chief<br />

Financial Officer of CMS’ Office of Financial<br />

Management, told a Congressional panel in<br />

July 1 that CMS is farther ahead in implementing<br />

RAC audits for the Medicare Part<br />

D prescription program for seniors. The new<br />

law requires RACs to ensure plans under<br />

Parts C and D:<br />

n have anti-fraud policies in effect and to<br />

review the effectiveness of such policies;<br />

n examine claims for reinsurance payments<br />

to determine whether plans submitting the<br />

claims incurred costs in excess of allowable<br />

reinsurance costs; and<br />

n review estimates of prescription drug plans<br />

for high-cost beneficiaries submitted by<br />

private plans and compare estimates with<br />

the number of high-cost beneficiaries actually<br />

enrolled in those plans.<br />

The start date for these government activities<br />

is no later than December 31, 2010 according<br />

to the Patient Protection and Affordable<br />

<strong>Care</strong> Act, section 6411. Thus, the health<br />

care industry can expect to see a significant<br />

expansion of the RAC program. Sen. Tom<br />

Carper (D, Del.) chair of the Senate Homeland<br />

Security and Governmental Affairs subcommittee<br />

on Federal Financial Management,<br />

Government Information, Federal Services and<br />

International Security, encouraged CMS to<br />

meet the December 31 deadline imposed by the<br />

Patient Protection and Affordable <strong>Care</strong> Act.<br />

Adding to this RAC expansion is that fact<br />

that President Obama signed in July the<br />

<strong>Health</strong> <strong>Care</strong> <strong>Compliance</strong> <strong>Association</strong> • 888-580-8373 • www.hcca-info.org<br />

Improper Payments Elimination and Recovery<br />

Act of 2010, and this may open the door<br />

to more widespread private audits, industry<br />

experts say. The law also would add sanctions<br />

for programs that do not comply.<br />

Your <strong>Compliance</strong> Committee, RAC Committee,<br />

<strong>Health</strong> Information Management<br />

(HIM), and Business Office/Billing leadership<br />

should be aware of possible additional<br />

external audits. <strong>Compliance</strong> staff will need<br />

to make revisions to their annual work<br />

plans to address this expansion as well. So,<br />

we will need to monitor this closely and<br />

wait patiently for the details so we can plan<br />

accordingly. Be sure to include this topic on<br />

the agenda for your next compliance meeting.<br />

Either way, more time and resources will be<br />

needed from providers in the near future. n<br />

Resources:<br />

Fierce <strong>Health</strong> Finance<br />

(www.fiercehealthfinance.com)<br />

RAC Monitor (www.RACmonitor.com)<br />

AAPC (www.news.aapc.com)<br />

<strong>Health</strong>care Finance News<br />

(www.healthcarefinancenews.com)<br />

Lexology (www.lexology.com)<br />

1. Committee on Homeland Security and Government Affairs Subcommittee<br />

on Federal Financial Management, Government Information, Federal<br />

Services, International Security, United States Senate, July 15, 2010.<br />

<br />

Contact Us!<br />

www.hcca-info.org<br />

info@hcca-info.org<br />

Fax: 952/988-0146<br />

6500 Barrie Road, Suite 250<br />

Minneapolis, MN 55435<br />

Phone: 888/580-8373<br />

To learn how to place an advertisment<br />

in <strong>Compliance</strong> Today, contact Margaret<br />

Dragon: e-mail: margaret.dragon@hccainfo.org<br />

phone: 781/593-4924<br />

9<br />

December 2010

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!