Medicaid RAC Improvement Act of 2026

The Medicaid RAC Improvement Act of 2026 strengthens oversight of the Medicaid Recovery Audit Contractor program to improve how states identify and recover improper payments. It requires the Centers for Medicare and Medicaid Services to establish clear expiration dates for state exceptions to the program, mandate detailed annual reports on audit results, and ensure managed care organizations are included in these reviews. Additionally, the bill directs the agency to study barriers preventing states from participating and to launch a five-year demonstration project aimed at increasing state engagement. The legislation also extends the standard audit period to allow reviews of payments made over the previous four fiscal years.