Evidence record

Medicaid CMS Oversight and Guidance Could Improve Recovery Audit Contractor Program

Publication date
June 28, 2023
Source record
Original document linked
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Findings

5

Recommendations

4

Overall conclusion

CMS's oversight of the Medicaid RAC program has been inconsistent, with missed opportunities to recover overpayments and improve program effectiveness. Implementing recommended policies and conducting targeted studies could enhance the program's efficiency and recovery potential.

Scope

The audit covers the Medicaid Recovery Audit Contractor (RAC) program during fiscal year 2021, including state participation status, CMS oversight practices, exemption processes, and the scope of audits, particularly focusing on the inclusion of managed care payments and the monitoring of program effectiveness.

Findings (5)

Each finding has a stable link.

  1. F-058

    Most states did not participate in the Medicaid RAC program during fiscal year 2021, citing reasons such as having other program integrity initiatives, inability to procure a contractor, and high enrollment in managed care.

  2. F-059

    CMS did not consistently establish or communicate expiration of exemptions for full participation, leading to potential missed opportunities for recovery.

  3. F-060

    Most participating states operated with regulatory exceptions, which could influence program effectiveness.

  4. F-061

    CMS's oversight was inconsistent, particularly regarding monitoring SPA expiration dates and reporting on program effectiveness.

  5. F-062

    CMS has not conducted a cost-effectiveness study on including managed care in the RAC scope, despite the growth of managed care enrollment.

Recommendations (4)

  1. R-080

    Establish and implement written policies and procedures to document and communicate SPA expiration dates.

    Related finding F-059
  2. R-081

    Establish and implement policies to monitor SPA expiration dates.

    Related finding F-061
  3. R-082

    Describe the effectiveness of the RAC program and include recommendations for improvement in annual reports to Congress.

    Related finding F-061
  4. R-083

    Conduct a study to determine the cost-effectiveness of including managed care payments in the RAC program.

    Related finding F-062