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CMS RAC Program

The Centers for Medicare and Medicaid Services (CMS), the federal agency that administers the Medicare program, awarded Connolly Healthcare the contract to provide recovery audit services mandated by the Tax Relief and Health Care Act of 2006.

The Recovery Audit Contractor (RAC) program is a cost containment effort aimed at reducing improper payments within Medicare programs as well as identifying process improvements to reduce or eliminate future improper payments.

Connolly is tasked with auditing Region C, which consists of the states of:

AL, AR, CO, FL, GA, LA, MS, NC, NM, OK, SC, TN, TX, VA, WV and the territories of Puerto Rico and U.S. Virgin Islands which makes up 39% of the United States. Region C is the largest of the four RAC regions.

The RAC Program’s Mission:
"To reduce Medicare improper payments through efficient detection and collection of overpayments, the identification of underpayments, and the implementation of actions that will prevent future improper payments.”

For additional information about the program, visit the following websites:


RAC Program Overview
CMS RAC Program FAQs
CMS Manuals
Medicare Coverage Database
American Hospital Association FAQs