Final answer:
The Recovery Audit Contractor (RAC) program is the system implemented by the CMS to identify overpayments and underpayments to providers in the Medicare program. It involves audits of Medicare claims on a post-payment basis to ensure proper payment and the responsible use of taxpayer dollars. Providers can return overpayments or claim underpaid amounts identified by RACs.
Step-by-step explanation:
The program implemented by the Centers for Medicare & Medicaid Services (CMS) to identify overpayments and underpayments to providers is known as the Recovery Audit Contractor (RAC) program. The RAC program is designed to detect and correct improper payments in the Medicare program. It involves a nationwide system of RACs who are responsible for auditing Medicare claims on a post-payment basis to identify and rectify these errors.
The RACs review claims on a contingency fee basis, which means they are paid a percentage of the improper payments they identify and recover. This program helps ensure that providers are paid correctly for services provided to Medicare beneficiaries and that taxpayer dollars are used responsibly. If a RAC identifies an overpayment or underpayment, the provider is notified and can either return the overpayment or submit a claim for the underpaid amount.