Noteworthy News

Senate Committee Gets Earful About RAC Audits

Medicare RAC audits cost hospitals a great deal of money and often are unfair, hospital executives told the Senate Finance Committee at a recent committee hearing.

Among other problems caused by audits performed under Medicare’s RAC (Recovery Audit Contractors) program, according to hospital officials, they too often deny payments for inpatient services; they leave hospitals feeling forced to hold for observation status patients they believe should be admitted as inpatients; and they cost hospitals significant amounts of staff time and money to prepare for, defend, and appeal decisions with which they disagree.

RAC audits also often leave Medicare patients with a far larger hospital bill than they expected.

Read more about RAC audits and testimony given before the Senate Finance Committee in this Kaiser Health News reportCongress Chamber.

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