The Recovery Audit Contractor (RAC) program was developed to identify and reduce improper payments for:

The Recovery Audit Contractor (RAC) program was established specifically to identify and reduce improper payments, which includes both the scrutiny of Medicare claims and the recovery of overpayments. This program aims to ensure compliance with regulations and to prevent fraudulent billing practices. RACs review claims after they have been paid to detect any discrepancies or errors that could indicate overpayments to healthcare providers.

The emphasis on both Medicare claims and the collection of overpayments in the correct choice highlights the dual function of the RAC program. It not only reviews claims to ensure they are valid and meet Medicare criteria but also seeks to recover funds associated with erroneous payments that should not have been processed or paid. This comprehensive approach is essential in maintaining the integrity of the Medicare program and protecting taxpayer funds.

Other options may focus solely on aspects of the situation but do not encapsulate the full scope of the RAC program's mission as effectively, lacking either the mention of Medicare claims or the recovery of overpayments, which diminishes their completeness in describing the RAC's objectives.