[ABA Health, July 22, 2010] The Patient Protection and Affordable Care Act (PPACA) calls for the Centers for Medicare and Medicaid Services (CMS) to significantly increase the scope of the Recovery Audit Contractor (RAC) program by the end of 2010.

Currently, the RAC program hires contractors to review Medicare Parts A and B claims for overpayments and underpayments. The program began as a demonstration program in 2005 and was expanded to a permanent program by Section 302 of the Tax Relief and Health Care Act of 2006. As of January 2010, the RAC program is now active in all 50 states.

Under the PPACA, CMS is mandated to expand the RAC program to Part C of Medicare, the Medicare Advantage programs; Part D of Medicare, the Medicare Prescription Drug programs; and the Medicaid program. CMS is required to have contractors in place to review Parts C and D of Medicare by December 31, 2010. The responsibility for the expansion of the RAC program to Medicaid will fall on the individual states. Each state will be required to have at least one RAC under contract by December 31, 2010.

For more about the expansion of the RAC program visit ABA Health eSource.