The Office of the Inspector General (OIG) issued a report in February 2010 called Recovery Audit Contractors’ Fraud Referrals.  The purpose of the report was to conduct an in-depth study of: 1) the extent to which RACs  referred instances of potential fraud to CMS during the three year demonstration  and 2) the extent to which CMS provided training to the demonstration RACs and the permanent RACs regarding identifying and referring potential fraud.  The results of the report indicate, more than anything, that the OIG wants the RACs to step up their fraud referrals. (more…)

On March 10, 2010, President Obama issued a memorandum to all heads of executive departments and agencies regarding finding and recapturing improper payments.  As part of continuing efforts to combat fraud, waste and abuse throughout the government, President Obama is expanding the the use of  “Payment Recapture Audits.”    Payment recapture audits are what recovery audit contractors (RACs) do to earn their contingency fees.  (more…)