The American Hospital Association (AHA) recently backed legislation that would reform the Recovery Audit Contractor (RAC) program, which the group says has added regulatory cost to the hospital industry without adequately achieving its goal of reducing billing errors. The bill, H.R. 6575, the Medicare Audit Improvement Act of 2012, sponsored by House Small Business Committee Chairman Graves (R-MO), would make several reforms to how RACs operate, including greater auditor transparency and mandatory physician review for payments denied by Medicare. To view AHA's support letter, please click here.