Medicaid RAC Improvement Act of 2026

This bill makes changes to a program in Medicaid that uses outside contractors to find and fix incorrect payments made to healthcare providers, including collecting money that was overpaid and paying back money that was underpaid. Right now, states can ask for permission to skip having this program, but the bill says no new exceptions will be allowed after December 31, 2028. The bill also expands what these contractors can review, including payments to certain managed care health plans, and lets them look back at payments made up to four years before the current year. Finally, it requires yearly reports on how well the program is working in each state and calls for a study and a test program to get more states to participate.

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