42 C.F.R. § 455.502 – Establishment of program.

(a) The Medicaid Recovery Audit Contractor program (Medicaid RAC program) is established as a measure for States to promote the integrity of the Medicaid program.
(b) States must enter into contracts, consistent with State law and in accordance with this section, with one or more eligible Medicaid RACs to carry out the activities described in § 455.506 of this subpart.
(c) States must comply with reporting requirements describing the effectiveness of their Medicaid RAC programs as specified by CMS.