A bill to implement recommendations of the Comptroller General of the United States for improving the Medicaid Recovery Audit Contractor program and identifying additional opportunities to recover Medicaid overpayments, and for other purposes.
About This Bill
Committee
Latest Action · June 24, 2026
Read twice and referred to the Committee on Finance.
The Medicaid RAC Improvement Act of 2026 strengthens oversight and expands the reach of state programs designed to identify and recover improper Medicaid payments. The bill requires states to include managed care organizations in their recovery audit efforts, gives the federal government clearer authority to monitor state exceptions to these programs, and mandates detailed annual reporting to Congress on how much money states recover from overpayments versus underpayments. States must also allow managed care plans an 18-month period to conduct their own internal payment reviews or consent to external audits, with all recovery audit contractor contracts needing to examine payments made in the current year and up to four prior fiscal years. Additionally, the legislation directs the federal government to study why some states struggle to establish these programs and to test solutions through a five-year demonstration project, with all findings reported back to Congress by specified deadlines.
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