CMS has announced that a bid protest regarding the award of Recovery Audit Contractors (RAC) was settled on February 4, 2009. CMS will now continue with implementation of the RAC program, under which four designated contractors will review all Medicare Part A and B paid claims to identify Medicare overpayments and underpayments. The RACs will be paid a contingency fee based on overpayments and underpayments they find.
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