The Medicare Modernization Act of 2003 required the Centers for Medicare & Medicaid Services to implement a Medicare & Medicaid Services to implement a Medicare Recovery Audit Contractor (RAC) demonstration. RAC’s are charged with identifying and correcting improper payments (both over – and under-payments) and are paid a percentage of the over-payments they recover. RACs look for improper payments caused by coding errors and lack of medical necessity. The Tax Relief Act and Healthcare Act of 2006 requires nationwide implementation of the RAC program by 2010. Mississippi implementation begins in summer of 2009. Connnolly Consulting is the contractor for Mississippi. Check these resources for more information. AAFP; CMS