For how many years do Medicare Recovery Audit Contractors have the authority to audit medical records retrospectively?

Medicare Recovery Audit Contractors (RACs) have the authority to audit medical records retrospectively for a period of three years. This timeframe allows RACs to review claims to ensure compliance with Medicare rules and identify any overpayments or underpayments. The three-year window aligns with the statute of limitations for Medicare claims, permitting RACs to evaluate the accuracy of billing and service documentation while ensuring that providers are held accountable for correct coding and billing practices. This auditing practice helps maintain the integrity of the Medicare system and protects it from fraud, waste, and abuse. Understanding this key aspect of Medicare auditing is essential for providers as it highlights the importance of proper record-keeping and compliance with regulations over the established period.