Millions of claims dollars are overpaid due to hospitals’ coding errors. For FY 2012, health care providers nationwide returned a net $900 million in Medicare overpayments identified by Medicare’s Fee-for-Service Recovery Audit Contractor (RAC) Program (as published in the CMS RAC newsletter) Millions of claims dollars are overpaid due to hospitals’ coding errors. For FY 2012, health care providers nationwide returned a net $900 million in Medicare overpayments identified by Medicare’s Fee-for-Service Recovery Audit Contractor (RAC) Program (as published in the CMS RAC newsletter)