The Office of Inspection General (OIG) recently issued a report that addresses flaws in CMS oversight of recovery audit contractors (RACs). Specifically, the report concluded that RACs are not adequately identifying potentially fraudulent activity and that CMS did not take action to address all referrals of potential fraud that it received from RACs. Additionally, the report found that CMS does not effectively evaluate the corrective actions it puts into place to address identified program vulnerabilities. The OIG was also critical of CMS performance evaluations of the RACs
