What was the primary purpose of the Recovery Audit demonstration under the Medicare Modernization Act?

The primary purpose of the Recovery Audit demonstration under the Medicare Modernization Act was to identify overpayments and underpayments made to healthcare providers. This initiative was designed to ensure that Medicare payments were accurate, thereby safeguarding the program's financial integrity. The focus was on identifying discrepancies in billing, which could be due to various factors including coding errors, incorrect billing practices, or eligibility issues. The findings from this demonstration helped to inform the broader Recovery Audit Contractor program, which emphasizes the importance of preventing fraud, waste, and abuse in the Medicare system by conducting audits of provider claims. This effort not only protects taxpayer dollars but also enhances the overall efficiency of Medicare reimbursement processes.