Recovery Audit Contractor (RAC)

A Recovery Audit Contractor (RAC) is a program introduced by the U.S. government to identify and correct errors in Medicare claims. RACs review medical billing to find accidental overpayments or underpayments to healthcare providers. If they find mistakes, they help recover overpaid amounts for the Medicare program. Essentially, RACs ensure that taxpayer money is used correctly in healthcare, promoting accountability and efficiency in the billing process. They help maintain the integrity of the Medicare system by preventing fraud and ensuring that services billed to Medicare are appropriate and correctly documented.