Senate Reform Bill Would Expand RAC Program

The expansion of the RAC program to Medicare Parts C and D doesn't surprise Hoy. "Providers have actually been asking whether RACs would audit Part C claims because they feel they are paid incorrectly a lot of the time."

But that doesn't mean the program is a no-brainer. For one thing, it is unclear how RACs, which are paid by contingency fee, would be paid for ensuring the presence of anti-fraud plans, says Hoy. "There's no dollar amount attached. So what would they get paid for, and how much would they receive?"

In addition, the Bill would require the secretary of HHS, through the CMS administrator, to submit an annual report to Congress on the effectiveness of the Medicare and Medicaid RAC program, along with recommendations to expand or improve the program.