On February 17, the Centers for Medicare & Medicaid Services (CMS) launched a website providing the status of Medicaid Recovery Audit Contractor (RAC) operations in all states and U.S. territories, including whether a state plan amendment (SPA) has been received and whether an exception to the program has been requested. CMS expects to update the site as individual states and U.S. territories update their implementation status.
The Medicaid RAC program, created by the Affordable Care Act (ACA), is designed to identify Medicaid overpayments and underpayments and recover any improper payments. According to the site, six states (Washington, South Dakota, Kansas, Arkansas, Mississippi, and Florida), three U.S. territories (Guam, the Northern Mariana Islands, and American Samoa), and Puerto Rico have approval from CMS for their Medicaid SPA. SPAs have been received from every state and territory with the exception of the District of Columbia.
A total of seven states (Alaska, Montana, Kansas, Wyoming, South Dakota, Minnesota, and Louisiana), four U.S. territories, and Puerto Rico have requested an exception from some or all of the requirements of the Medicaid RAC program.
A proposed rule published in the November 10, 2010, Federal Register required all states and U.S. territories to submit an SPA to CMS by December 31, 2010, formally establishing a Medicaid RAC program.
CMS, in a February 1 bulletin, delayed the original implementation date of April 1 for all Medicaid RACs until the release of a final rule.