What is the purpose of the Recover Audit Contractor (RAC) program?

The purpose of the Recovery Audit Contractor (RAC) program is to identify and recover overpayments made by Medicare. This initiative was established to ensure that Medicare funds are being used appropriately and efficiently, addressing issues related to erroneous payments. RACs review claims and medical records to identify both improper payments and potential underpayments, thus recovering funds that should not have been disbursed. This program is an essential component of Medicare's efforts to maintain the integrity of the program, ultimately aiming to reduce fraud, waste, and abuse within the healthcare system.

By focusing on the identification and recoupment of overpayments, the RAC program contributes to the overall financial sustainability of Medicare, promoting accountability among healthcare providers and ensuring that resources are allocated correctly. This vigilant oversight helps to safeguard Medicare resources for future beneficiaries.