Which organization identifies improper payments made on CMS claims?

• A. CMS Administrator
• B. OIG
• C. RAC
• D. MAC

Answer: (C)

The organization designed to identify improper payments on CMS claims is the Recovery Audit Contractor (RAC). CMS contracts RACs to conduct post‑payment reviews of Medicare claims, detect improper payments, determine the correct amounts, and pursue recoupment of overpayments. This function is specifically aimed at finding and recovering errors after claims have been paid, contributing directly to program integrity.

While the OIG also investigates waste, fraud, and abuse across CMS programs and the CMS Administrator oversees program operations, the RAC's role is the targeted auditing and recovery of improper Medicare payments. MACs handle claims processing and payment, but their primary duty isn’t identifying improper payments through post‑payment audits.