October 25, 2013


Let’s Right RACs

Rich Umbdenstock, AHA President and CEO

Hospitals work hard to ensure the services they provide are billed fairly and accurately the first time, every time.  That’s why we invest in people, software and compliance programs to avoid expensive, time-consuming inaccuracies. But Recovery Audit Contractor (RAC) auditors – most of them not physicians – are paid to second-guess the medical expertise of physicians who treat Medicare beneficiaries, receiving a 9.0-12.5% commission on every claim they deny. When hospitals appeal RAC denials, they win 72% of the time, but it’s expensive, and time limits are stacked against hospitals. The AHA has a new video that explains problems with the way RAC auditors operate. We’re pleased that 161 House members and 7 senators are co-sponsors of the Medicare Audit Improvement Act of 2013 (H.R. 1250 and S. 1012), which would make needed changes to rein in RACs.  Please share these materials with your legislators and ask them to support this important legislation.

Thanks,
Rich

 Questions or Comments?
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rich@aha.org

 

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