CMS Delays Implementation Deadline for Medicaid RACs - February 24, 2011

On Feb. 1, the Centers for Medicare & Medicaid Services (CMS) issued an informational bulletin announcing that it would delay the deadline for implementation by states of Medicaid Recovery Audit Contractor (RAC) programs. Under the Affordable Care Act, states are required to implement Medicaid RAC programs similar to already-existing Medicare RACs, and CMS last year proposed an implementation deadline of April 1, 2011. Now, “out of consideration for State operational issues and to ensure States comply with the provisions of the Final Rule,” CMS has determined to delay the requirement for state implementation. A final rule on Medicaid RACs should be issued later this year, at which point CMS will announce a new implementation deadline. Please contact Charles Luband, NAPH’s legal counsel at Ropes & Gray, LLP, at charles.luband@ropesgray.com, if you have more information about your hospital’s experience with RAC programs.