The Centers for Medicare and Medicaid Services has determined that States will not be required to implement their Medicaid Recovery Audit Contractor (RAC) programs by the proposed April 1, 2011 date. The announcement came in a CMS bulletin published on February 1, 2011. NCMS will continue to work with its Health Care Audit Resource Team to identify and address issues related to Medicaid RAC audits.

CMS says that when the Final Rule on the Medicaid RAC program is published later this year, it will indicate the new implementation date. NCMS is following closely developments in the Medicaid RAC program and will keep physicians informed, including when a new Medicaid contractor is announced.

CMS’s announcement follows a recent letter from the NCMS, AMA and other state and specialty societies advocating for substantial direction from CMS regarding Medicaid RAC program requirements prior to implementation. Read the letter at: http://www.ama-assn.org/ama1/pub/upload/mm/399/rac-letter-10jan2011.pdf.