CMS Brags About New Fraud Prevention System, Ignores Successful RAC Program

WASHINGTON--()--Today, Citizens Against Government Waste (CAGW) was dismayed that the Centers for Medicare and Medicaid Services (CMS) would boast about new fraud prevention technology while keeping the Recovery Audit Contractor (RAC) program, CMS’s most successful fraud-prevention tool, on the bench.

Today, CMS flaunted the supposed success of their “cutting-edge technology” designed to identify and prevent improper Medicare payments. CMS claimed to have saved the Medicare Trust Fund $820 million since 2010 through the “Fraud Prevention System” (FPS).

CAGW Vice President for Policy and Communications Leslie Paige said, “Once again, we see CMS patting itself on the back over its ability to measure the waste and fraud, but failing to really leverage that nifty, expensive technology to make a dent in the waste epidemic, in real-world terms. The money continues to flow out the doors at alarming rates. If CMS wants to really impact the staggering amount of Medicare fraud in this country, then release the RAC program from administrative purgatory.”

What was missing from the CMS statement was any mention of the most successful Medicare fraud prevention tool in history: The RAC program. Since it was implemented nationwide in January 2010, the RAC program has returned more than $9.7 billion to the Medicare Trust Fund. Until the program was stymied and certain audits were suspended by CMS in October 2013, RACs were recovering about $1 billion per quarter, which would eclipse CMS’s FPS’s $820 million over a three year period. Plus, unlike the FPS, the RACs operate at zero taxpayer expense. They are compensated only if they correctly identify and recover improper payments.

Citizens Against Government Waste is a nonpartisan, nonprofit organization dedicated to eliminating waste, fraud, abuse, and mismanagement in government. Porker of the Month is a dubious honor given to lawmakers, government officials, and political candidates who have shown a blatant disregard for the interests of taxpayers.

Contacts

Citizens Against Government Waste (CAGW)
Curtis Kalin, 202-467-5318

Release Summary

Citizens Against Government Waste was dismayed that the Centers for Medicare and Medicaid Services would boast about new fraud prevention tech while keeping the Recovery Audit Contractors on the bench

Contacts

Citizens Against Government Waste (CAGW)
Curtis Kalin, 202-467-5318