How many RACs were involved in the initial demonstration project?

How many RACs were involved in the initial demonstration project?

• A. Six
• B. Four
• C. Nine
• D. Two

Answer: (B)

The initial demonstration project used a small, focused pilot with four RACs. This setup provided enough regional coverage to test how post-payment audits and recovery processes would work in different areas, while still being manageable to oversee and evaluate. Four contractors punch above a single-region test but stay within a scope that lets CMS refine procedures and measure impact before expanding nationwide. The other counts would either be too limited to show regional variation or too large for a pilot to run smoothly.

The initial demonstration project used a small, focused pilot with four RACs. This setup provided enough regional coverage to test how post-payment audits and recovery processes would work in different areas, while still being manageable to oversee and evaluate. Four contractors punch above a single-region test but stay within a scope that lets CMS refine procedures and measure impact before expanding nationwide. The other counts would either be too limited to show regional variation or too large for a pilot to run smoothly.