CMS announces indefinite postponement of recovery audit contractor prepayment review

Just three days before the Centers for Medicare & Medicaid Services was scheduled to launch its Recovery Audit Prepayment Review demonstration, the agency announced the indefinite postponement of the program.

According to CMS' announcement, the decision was made in order to allow it to consider the comments and suggestions it received when the program was announced in November of last year. The agency noted that while there is currently no date for the demonstration to begin, it will provide at least 30 days' notice when a new schedule is decided upon.

The projects were conceived with the aim of strengthening Medicare by eliminating fraud, waste and abuse by mitigating duplicate payments and other irregularities. According to a previous CMS announcement, the review will focus on inpatient claims involving short stays. After being launched, the demonstration will run for three years in 11 states. Seven of the states (California, Florida, Illinois, Louisiana, Michigan, New York and Texas) have high populations of providers prone to fraud and error, while the remainder (Missouri, North Carolina, Ohio and Pennsylvania) have high claims volumes of short stays.

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