CMS PROGRAM IDENTIFIES $371.5 MILLION IN IMPROPER MEDICARE PAYMENTS IN THREE STATES

The Centers for Medicare & Medicaid Services (CMS) today announced that $371.5 million in improper Medicare payments has been collected from or repaid to health care providers and suppliers as part of a demonstration program using recovery audit contractors (RACs) in California, Florida and New York in 2007. Nearly $440 million has been collected since the program began in 2005.

“We need to ensure accurate payments for services to Medicare beneficiaries and by taking this important step, people with Medicare can be assured they are being charged correctly for their share of their health care services,” Acting CMS Administrator Kerry Weems said. “The RAC demonstration program has proven to be successful in returning overpayments to the Trust Fund and identifying ways to prevent future improper payments. We will use the lessons we learned from the demonstration program to help us implement the national RAC program next year.”

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