In CMS payment integrity programs, RAC stands for what?

• A. Recovery Audit Contractor
• B. Regional Audit Council
• C. Regulatory Audit Committee
• D. Rapid Assessment Court

Answer: (A)

RAC stands for Recovery Audit Contractor. In CMS payment integrity programs, Recovery Audit Contractors are private firms contracted by CMS to review Medicare claims after payment has been made and identify improper payments to recover funds. This program, authorized by the Tax Relief and Health Care Act of 2006, assigns RACs to specific regions to perform audits, detect overpayments, and coordinate recoupment with providers to improve payment accuracy. The other terms don’t reflect the recognized CMS program name, so they aren’t correct in this context.