The American Medical Association (AMA) is telling lawmakers and regulators that Recovery Audit Contractors (RACs) making incorrect accusations should be penalized. The RAC system, which rewards the government’s contracted investigators based on the volume of improper payments they find, has long been criticized by healthcare providers. The AMA believes there are not enough disincentives for auditors who make false accusations without merit. The AMA is also asking CMS to pay providers interest when they successfully appeal a finding. As of now, there is a two-year RAC appeal backlog which federal regulators are working through. The AMA believes that without any government action, RACs will “continue to operate under their current financial incentives and resist changes that would improve audit accuracy, reduce the number of appeals, and mitigate the burden on physicians.
Click here to read the AMA letter to CMS.
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