House Subcommittee to hold hearing on Medicare fraud policies, RAC audits key topic

House Ways and Means Health Subcommittee Chairman Kevin Brady (R-TX) announced yesterday that the Subcommittee on Health will hold a hearing on Medicare waste, fraud, and abuse, with a focus on the policies that address these problems.  Chairman Brady recently spoke at the AOPA Policy Forum in Washington DC and is very aware of the problems with the current RAC program and the plight of orthotists and prosthetists relating to RAC audits.

This hearing will allow the Subcommittee to hear directly from the U.S. Office of the Inspector General at the Department of Health and Human Services (OIG-HHS), the U.S. Government Accountability Office (GAO), and the Centers for Medicare and Medicaid Services’ Center for Program Integrity (CPI) about the different recommendations and approaches to curb abuses within Medicare.  

One section of the hearing will be denoted to RAC audits:

Recovery Audit Contractors (RACs) aim to reduce Medicare improper payments through the detection and collection of overpayments, the identification of underpayments, and the implementation of actions that will prevent future improper payments.  Many of these activities involve data-mining activities based on billing information.  Most of the data analysis is done after Medicare has made payment, but some work is now also being done before on a pre-payment basis.  The Affordable Care Act established RACs for Medicare Part C and Part D and for Medicaid. 

The Subcommittee will hear testimony from Gloria Jarmon, Deputy Inspector General for Audit Services at OIG-HHS; Kathleen King, Director, Health Care at GAO; and Dr. Shantanu Agrawal, Deputy Administrator Director of CPI.  The hearing will take place on Wednesday, April 30, 2014, in 1100 Longworth House Office Building, beginning at 2:00 P.M.

Click here for the full release from the House Committee on Ways and Means.

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