Steven Baruch - Health Care Compliance Association
Steven Baruch - Health Care Compliance Association
Steven Baruch - Health Care Compliance Association
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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