Certified Coding Associate (CCA) Practice Exam

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What are RACs primarily responsible for?

Regulating insurance claims

Detecting improper Medicare payments

Recovery Audit Contractors (RACs) are primarily focused on detecting improper Medicare payments. Their main role is to identify billing errors, which include both overpayments and underpayments. This helps ensure that Medicare is billed appropriately for the services provided and supports the integrity of the Medicare program by preventing fraud and abuse.

RACs use data analysis and review specific types of claims to determine compliance with Medicare regulations. Their efforts contribute to the larger goal of maintaining fiscal responsibility within the healthcare system, ensuring that public funds are used correctly.

While regulating insurance claims, setting patient care standards, and providing patient education are important functions within the healthcare system, they fall under different agencies or organizations and are not the primary responsibility of RACs. Each of those areas serves a distinct purpose separate from the primary objective of identifying and correcting improper Medicare billing.

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Setting patient care standards

Providing patient education

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