Background on the RAC Program
RAC Permanent Program:
Section 302 of the Tax Relief and Health Care Act of 2006 makes the RAC Program permanent and requires the Secretary to expand the program to all 50 states by no later than 2010.
By 2010, CMS plans to have 4 RACs in place. Each RAC will be responsible for identifying overpayment and underpayments in approximately ¼ of the country. The new RAC jurisdictions match the DME MAC jurisdictions.
The RAC demonstration program has proven to be successful in returning dollars to the Medicare Trust Funds and identifying monies that need to be returned to providers. It has provided CMS with a new mechanism for detecting improper payments made in the past, and has also given CMS a valuable new tool for preventing future payments.
- Step 1 - Expand the Current RACs: In the Spring of 2007, CMS added one state to each of the current 3 RAC jurisdictions.
- Step 2 - Full and Open Competition for 4 RAC Jurisdictions: In the Spring of 2007, CMS began the process to procure 4 RAC contractors through a full and open competition. On March 16, 2007 CMS released a Request for Information (RFI) which contained a draft statement of work. On August 16, 2007 CMS released a pre-solicitation notice which contained a statement of work. On October 19, 2007, CMS released a Request for Proposal (RFP) which opened a Question and Answer period. On November 7, 2007, CMS posted a revised Statement of Work. Answers to the questions were posted on November 19, 2007.
Who Was Awarded Region B?
On October 6, 2008, CMS announced that CGI Technologies and Solutions, Inc. of Fairfax, Virginia, was awarded Region B, initially working in Indiana, Michigan and Minnesota. Illinois, Kentucky, Ohio and Wisconsin will be added to RAC Region B in 2009. CGI may be contacted by phone at 877-316-7222 and by e-mail at firstname.lastname@example.org.