LUPA & PDGM

    Recovery Audit Contractor (RAC) Audit

    Medicare review conducted to identify improper payments, including overpayments and underpayments.

    Definition

    A Recovery Audit Contractor (RAC) Audit is a Medicare review conducted to identify improper payments, including overpayments and underpayments, made to healthcare providers.

    Why it matters

    RAC audits evaluate documentation supporting billed services and may result in repayment requests or payment corrections.

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