Prepayment Review Demonstration

This demonstration allows Medicare Recovery Auditors (a.k.a. RACs) to review claims before they are paid to ensure that the provider complied with all Medicare payment rules. The Recovery Auditors are conducting prepayment reviews on certain types of claims that historically result in high rates of improper payments. These reviews will focus on seven states with high populations of fraud- and error-prone providers (FL, CA, MI, TX, NY, LA, IL) and four states with high claims volumes of short inpatient hospital stays (PA, OH, NC, MO) for a total of 11 states. This demonstration will also help lower the error rate by preventing improper payments rather than the traditional "pay and chase" methods of looking for improper payments after they occur. This demonstration began on September 1, 2012. 

February 4, 2013 - Table 1 Prepay Edits