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GAO-12-95R 1 (2011-10-03)

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A GAO
        Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548


          B-322488


          October 3, 2011

          The Honorable Max Baucus
          Chairman
          The Honorable Orrin G. Hatch
          Ranking Member
          Committee on Finance
          United States Senate

          The Honorable Fred Upton
          Chairman
          The Honorable Henry A. Waxman
          Ranking Member
          Committee on Energy and Commerce
          House of Representatives

          Subject: Department of Health and Human Services, Centers for Medicare &
                  Medicaid Services: Medicaid Program; Recovery Audit Contractors

          Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Health and Human Services, Centers
          for Medicare & Medicaid Services (CMS), entitled Medicaid Program; Recovery
          Audit Contractors (RIN: 0938-AQ19). We received the rule on September 14, 2011.
          It was published in the Federal Register as a final rule on September 16, 2011. 76
          Fed. Reg. 57,808.

          The final rule implements section 6411 of the Patient Protection and Affordable Care
          Act and provides guidance to states related to the federal/state funding of state start-
          up costs of Medicaid Recovery Audit Contractors (RACs) and the payment
          methodology for state payments to Medicaid RACs. The final rule directs states to
          assure that adequate appeal processes are in place for providers to dispute adverse
          determinations by Medicaid RACs, and directs states to coordinate with other
          contractors and entities auditing Medicaid providers and with state and federal law
          enforcement agencies.

          Enclosed is our assessment of CMS's compliance with the procedural steps required
          by section 801 (a)(1)(B)(i) through (iv) of title 5 with respect to the rule. Our review of


GAO-12-95R

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