Today Dobson | DaVanzo released a study that estimates the potential Medicare savings for deferring provider payments for RAC appeals until after Administrative Law Judge (ALJ) hearing determination (Level 3).  Due to significant delays in the ALJ process, requests for hearings often take around 30 months until review and determination is received, resulting in significant interest payments for CMS when reimbursing providers for successful appeals. The study analyzed data from the Office of Medicare Hearing and Appeals (OMHA) and testimony from a Chief ALJ Judge to estimate the Medicare savings for avoided interest payments under this policy.  This study focuses on the savings for RAC audits for O&P services, as well as all Medicare Part B services associated with RAC Level 3 audits.

Click here to read the report.