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Background

The Medicare Modernization Act of 2003 established the Medicare Recovery Audit Contractor (RAC) program as a demonstration program to identify improper Medicare payments - both overpayments and underpayments.  RACs were paid on a contingency fee basis, receiving a percentage of the improper overpayments and underpayments they collect from providers.

The Tax Relief and Health Care Act of 2006 made the RAC program permanent and authorized the Centers for Medicare & Medicaid Services (CMS) to expand the program to all 50 states by 2010.  Nationwide rollout of the permanent RAC program is underway, with all states scheduled to come on board this year.  

4000 Kruse Way Place
Building 2, Suite 100
Lake Oswego, Oregon 97035
503-636-2204 | Fax: 503-636-8310
info@oahhs.org
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