What is a Recovery Audit Contractor (RAC) demand letter?
A RAC demand letter is a letter sent to the provider notifying them that an improper payment for the Medicare Program has been identified. This letter contains the reason for the improper payment, amount of the improper payment, date the improper payment amount should be paid and to whom, the regulation related to the improper payment, key timeframes within the process, how to stop recoupment, how to refund to avoid interest payment, where to send appeals and details of the Discussion period available with the RAC. An Audit Detail is included with the demand letter listing the specifics of the improper payment.
