The Centers for Medicare and Medicaid Services has approved South Dakota Medicaid’s State Plan Amendment seeking an exemption to Medicaid Recovery Audit Contractor (RAC) program requirements. The RAC program is used to identify and correct improper Medicaid payments through the collection of overpayments and reimbursement of underpayments made on claims for health care services provided to Medicaid recipients. Medicaid RACs are paid from amounts recovered on a contingent fee basis. SDAHO submitted a letter in support of the continued RAC exemption.
South Dakota’s new exemption will begin on June 1, 2021 after the current exemption expires on May 31, 2021. The new exemption will extend through May 2023. South Dakota is the only state to have a continuous exemption to the RAC program.
The Medicaid State Plan is available here.
