On October 15, 2009, the Centers for Medicare & Medicaid Services (CMS) posted a new Frequently Asked Question (FAQ) on the Medicare Recovery Audit Contractor (RAC) Program.
As reflected on the CMS website, the new FAQ reads as follows:
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Will Code N432 appear on the remittance advice for Recovery Audit Contractor (RAC) adjusted claims?Answer
CMS created code N432 to identify RAC adjusted claims, however CMS believes the code is being superseded in some of the systems by code N469 which is the Section 935 Limitation on Recoupment code. We are working to correct this problem in the system. Providers will receive demand letters for all RAC adjusted claims. These letters will allow providers to keep track of RAC adjustments versus all other claims processing adjustments.
