As first reported here at RACmonitor, (link to article) the Centers for Medicare & Medicaid Services (CMS) reportedly instructed the Recovery Auditors (RACs) to stop work on all new auditing activity, effective May 31, but a representative of the agency denied that any such move was made. 

Now comes an update from CMS in the agency’s FFS Provider e-news, dated Thursday, May 9, 2013: 

“CMS has begun the procurement process for the new Medicare FFS Recovery Audit Program contracts. A Request for Quote was issued through the General Services Administration.  CMS plans to contract with four A/B Recovery Auditors and one national Durable Medical Equipment (DME) and Home Health/Hospice Recovery Auditor. 
 
CMS has implemented a transition plan to minimize the amount of outstanding work that will transition to the new contracts. The Recovery Audit program will continue during the transition, although there will be some decline in activity. 
 
Providers should be aware of the following:
  • Additional Documentation Requests (ADRs) will begin to decline in June 2013
  • All prepayment reviews will continue without decline
  • Post-payment manual therapy reviews will continue without decline”

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