What is the time frame for RAC to review medical claims?

The Recovery Audit Contractor (RAC) program is designed to identify and correct improper payments made to healthcare providers under Medicare. The correct time frame for RACs to review medical claims is three years from the date of the claim's payment. This three-year period allows the RACs to identify any overpayments or underpayments that occurred during that time frame, ensuring that any errors can be addressed and corrected, thus minimizing waste and fraud in the Medicare system.

This extended review period is critical because it provides a more comprehensive overview of claims, allowing for a thorough audit process that enhances the accuracy of payments made from the Medicare trust fund. Understanding this time frame is vital for healthcare providers to maintain compliance and prepare for any potential audits or reviews by the RACs.

The other options are limited in scope, either focusing on shorter periods or specific dates that do not encompass the full three-year review capability established by RAC guidelines.