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CMS delays PMD, RAC demos

CMS delays PMD, RAC demos

BALTIMORE - CMS announced today that it has “delayed until further notice” a new power mobility device (PMD) demonstration that was scheduled to kick off in seven states on Jan. 1.

As part of the first phase of the demo, all PMD claims submitted by providers will be subject to a prepayment review process. In the second phase, scheduled to begin three to nine months later, physicians and practitioners will be subject to a prior authorization process.

“CMS received many comments/suggestions on the demonstration,” the agency stated. “CMS is considering these comments carefully. Therefore, CMS will delay implementation.”

CMS has also delayed a Recovery Audit Contractor (RAC) demo that was scheduled to kick off in 11 states Jan. 1. As part of the demo, RACs will be allowed to review claims before they're paid to ensure providers have complied with Medicare payment rules. The RACs will target certain types of claims that have, historically, resulted in high rates of improper payments.

CMS stated that it still plans to conduct the demos “to strengthen Medicare by aiming at eliminating fraud, waste and abuse” and that it will provide at least 30 days notice before the demos begin.

To read CMS's announcement, go to:


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