RAC Facts: More than $10 billion returned to Medicare Trust Fund

More than $10 billion returned to Medicare Trust Fund

The CMS Medicare Fee-for-Service (FFS) National Recovery Audit (RA) Program reports for the second and third quarters of 2015 show Recovery Audit Contractors (RACs) have returned a total of more than $10 billion to the Medicare Trust Fund since the program began in 2006.

Additionally, RACs have returned more than $800 million in underpayments to Medicare providers for services that were initially under billed. 

Due to restraints placed on the program, the CMS quarterly reports demonstrate a drastic drop in the recovery of misbilled Medicare funds over the past several quarters (See below). At the same time, the billing error rate has risen to 12.7% — the highest level in program history.

With the youngest of the baby boom generation enrolling in Medicare over the next 15 years and living longer, the cost per individual’s lifetime will double. Add to this that Medicare Trustees have reported that the Trust Fund will be bankrupt by 2030, and it is clear that the future solvency of the program is in jeopardy.

The work of Recovery Auditors ensures that taxpayer dollars devoted to Medicare are spent correctly. Let’s get RACs back to work for the 55 million Americans that rely on the program now and the millions of taxpayers who will enroll in the future.


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