Updated on: June 22, 2012

RAC Alert!

Original story posted on: November 4, 2008

The Government Accountability Office (GAO) has issued an automatic stay on the national roll out of the permanent Recovery Audit Contractor, originally scheduled to begin a program of provider education this month.


The GAO action comes on the heels of a protest filed by PRG-Schultz USA, Inc.(PRG), and Viant, Inc., both of which lost in the bidding for RAC contracts. PRG, a RAC contractor during the demonstration, covered California and Arizona and collected $330.5 million in improper payments.

GAO has 100 days to decide the case. Two options appear likely: The GAO will rule in favor of CMS and the program will roll out, or it will order the contracting process to be re-opened.

Just one month earlier, in October, CMS formally announced its selection of permanent contractors and provided details of its launch on its Website.


Chuck Buck

Chuck Buck is the publisher of RACmonitor and is the program host and executive producer of Monitor Monday.

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