Which statement is true regarding the Medicare recovery auditor program?

The statement indicating that CMS instructs recovery auditors to apply initial payment policies is accurate. The Medicare recovery auditor program is designed to identify and correct improper Medicare payments, which includes both overpayments and underpayments. Recovery auditors are required to follow the same payment policies that were initially applied when the claims were processed. This ensures consistency and adherence to existing Medicare policies, allowing for a standardized approach to identifying claims that may have been processed incorrectly.

The objective of the program is to enhance the integrity of the Medicare program while ensuring that Medicare beneficiaries receive the care they need without potential issues related to improper payments. Adhering to initial payment policies aligns the auditing process with the guidelines already established by the Centers for Medicare & Medicaid Services (CMS).

In contrast, the other statements do not align with the structure and purpose of the recovery auditor program. For example, auditors do not have the discretion to use different payment policies, they are not exclusively funded by the government, and the program does encompass both prepayment and postpayment audits, making it broader than just postpayment.