In an effort to help states reduce improper payments for Medicaid health care claims, the Centers for Medicare and Medicaid Services (CMS) issued a final rule to implement section 6411 of the Affordable Care Act.

Section 6411 of the Affordable Care Act, Expansion of Recovery Audit Contractor (RAC) Program, amends section 1902(a)(42) of the Social Security Act and requires states to contract with a RAC vendor allowing states to reimburse contractors who assist in the identification and recovery of improper payments. The RAC program has been used in the Medicare program and is now being required for Medicaid. The mission of the RAC program is to reduce improper payments in Medicaid through the efficient detection and collection of overpayments, the identification of underpayments, and the implementation of actions that will prevent future improper payments.

The State of Missouri, Department of Social Services (DSS), Missouri Medicaid Audit and Compliance Unit (MMAC), contracted with Cognosante, LLC, to be the Medicaid Recovery Audit Contractor. Cognosante is also the NPI Enumerator for CMS and has helped more than three million providers nationally obtain NPI numbers.

Cognosante began sending overpayment letters to certain providers last week. The overpayment letters contain information on repayment options, appeal information, and where to go for questions.  The telephone number for Cognosante’s Customer Service Center is (855) 667-2212 or you can email questions to MissouriRAC@cognosante.com

The Missouri Medicaid Audit & Compliance Unit (MMAC) issues final decision letters to providers after conducting reviews of post-payment claims.  Providers must be aware that the overpayment amount detailed in their final decision (demand) letter is a sanction according to 13CSR 70-3.030.  Providers are prohibited from submitting on-line claim adjustments for erroneous payment to correct the overpayment.  Providers must submit payment to MMAC Unit via check or electronic transfer from future remittance advice.

Questions and concerns regarding repayment can be directed to the MO HealthNet Division Provider Education Unit representative.

MMAC enforces this sanction per authority of 13 CSR 70-3.030.