CMS reports that, overall, the updated data indicate that of all the RAC overpayment determinations (525,133), only 7.6 percent (40,115) were overturned on appeals as of August 31, 2008. As has been widely reported here and elsewhere, RACs succeeded in correcting more than $1.03 billion of Medicare improper payments. Approximately 96 percent of these improper payments were overpayments collected from providers, while the remaining 4 percent were underpayments repaid to providers.
Provider Appeals of RAC-Initiated Overpayments:
Cumulative through 8/31/08, Claim RACs Only
Claims with overpayment determinations
Claims appealed by provider (any level)
Claims with appeal decisions favorable to providers
Percentage of appealed claims with a decision in provider’s favor
Percentage of claims overturned on appeal
CMS says it will continue to update this information on a regular basis until all appeals have completed the appeals system.