Withdrawal of claims payment may occur due to audits. What is the defined period of time for Recovery Audit Contractors (RACs) to initiate a "look back" at a claim?

The correct answer reflects the established guidelines governing the operations of Recovery Audit Contractors (RACs). According to the Centers for Medicare & Medicaid Services (CMS), RACs are authorized to review claims and initiate audits for up to three years from the date of service. This "look back" period allows RACs to ensure the accuracy of claims submitted and to identify potential overpayments or underpayments for services provided.

This three-year timeframe is in line with statutory requirements, which promote a thorough review process to facilitate accountability in the billing practices of healthcare providers. This period can encompass various types of claims, including hospital inpatient and outpatient services.

Understanding the implications of the look back period is essential for healthcare providers to maintain compliance and ensure appropriate revenue recovery practices. Adjusting to the regulatory framework regarding audits is critical for effective revenue cycle management.