RACs find overpayments.

The recovery audit contractors (RAC) pilot program is successfully identifying improper payments, according to a report from the Centers for Medicare and Medicaid Services. The findings from the report will help the CMS improve the program as it expands nationwide within 2 years, the agency said. The report showed that $693.6 million in improper Medicare payments were recovered between 2005 and March 2008. Of the overpayments, 85% were collected from inpatient hospital providers, 6% from inpatient rehabilitation facilities, 4% from outpatient hospital providers, and 2.5% from physicians, the report said. The remaining 2.5% were collected from ambulance services, skilled nursing facilities, and durable medical equipment suppliers. The program began in California, Florida, and New York in 2005 and expanded to Arizona, Massachusetts, and South Carolina in 2007.