House Reintroduces Bill to Reform Medicare RACs

House Reps. Sam Graves (R-Mo.) and Adam Schiff (D-Calif.) have reintroduced the Medicare Audit Improvement Act, a bipartisan measure that would reform Medicare Recovery Auditors — better known as Medicare RACs.

Under the proposed bill, Medicare RACs would be limited to a hard cap of additional medical record requests. Specifically, additional document requests from RACs would be capped to 2 percent of hospital claims, with a maximum of 500 medical record requests per 45 days.

In addition, the Medicare Audit Improvement Act of 2013 would implement financial penalties on RACs for auditing errors, improve RAC transparency and allow denied inpatient claims to be billed as outpatient claims when appropriate.

The American Hospital Association and American Health Information Management Association have both supported the bill, which was originally proposed in Congress this past October.

"While I believe we must continue to identify and correct verifiable fraud, hospitals have been buried in the administrative burdens put on them by Medicare audit contractors," Rep. Graves said in a news release. "Doctors and nurses should be focused on caring for patients, not trying to comply with the ever-increasing requests for documents."

More Articles on Medicare RACs:

CMS Proposes Changes to Medicare Part B Billing for Hospitals
More RAC Activity Focused on Setting, Not Necessity of Care
CMS Issues FY 2011 Medicare RAC Report to Congress

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