CMS State Medicaid Directors Letter - Recovery Audit Contractors (RACs) for Medicaid

This letter provides initial guidance on section 6411 of the Affordable Care Act, Expansion of the Recovery Audit Contractor (RAC) Program, which amends section 1902(a)(42) of the SSA requiring States to establish programs to contract with RACs to audit payments to Medicaid providers by December 31, 2010. CMS expects States to fully implement their RAC programs by April 1, 2011. As required by statute, CMS will be issuing regulations in this area shortly, providing additional guidance.