Good Morning all,

I just read some information published by Eli's Rehab Report regarding recovery 
audit contractors (RAC).  It seems that Medicare is setting up these RACs in 
three pilot locations (New York, Florida and California) to review therapy 
claims after payment has been made in order to determine overpayments.  The 
problem I see with this is that Eli reports that the RACs will be paid by 
retaining a percentage of whatever overpayment they recover.  Nothing like 
motivation.  This is planed to start in May, so if you are practicing in one of 
these states, this is an official heads up!  I would assume this will place an 
emphasis on a practitioners ability to document skilled service, medical 
necessity, progress and potential for progress.  It is unclear if they will 
attempt to recoup monies for technical errors (i.e. not using ICD-9 codes that 
denote medical necessity or using CPT codes which conflict based on the CCI 
edits).  I would presume that this will be fair game.

If you want more information visit the following link:
http://www.cms.hhs.gov/medlearn/matters/mmarticles/2005/se0469.pdf


Jimmie Arceneaux, LOTR
Metro Preferred Home Care
3501 N. Causeway Blvd., Ste 200
Metairie, LA 70002
504-838-7080
Fax 504-833-9309

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