What document is sent to providers when the Medicare Recovery Audit Contractor determines an incorrect payment?

When the Medicare Recovery Audit Contractor (RAC) identifies an incorrect payment, a demand letter is issued to the provider. This letter outlines the details of the overpayment, including the specific claims that were affected, the amount that was overpaid, and the rationale behind the determination. The demand letter serves as an official communication to inform the provider that they must return the overpaid amount or potentially contest the findings with additional information if they believe the payment was correct.

A demand letter is significant because it is the formal notification that initiates the process of recouping overpayments, enabling the provider to understand their obligations and the steps they can take in response. In contrast, options like an appeal request and claims denial do not directly relate to the notification provided by the RAC regarding incorrect payments, as they involve different processes and circumstances. A Medicare Summary Notice focuses on the claims processed under a beneficiary's Medicare coverage and is not a direct communication regarding RAC findings.