; and (2) by adding at the end the following new subparagraph: (C) Authority to implement shorter audit and recovery period Notwithstanding subparagraph (A)(ii), with respect to payments made under this title for specific categories of services, the Secretary may enter into contracts under paragraph (1) that provide for a retrospective period during which audit and recovery activities may be conducted of not more than 3 years. . (d) Report on RAC payment structure Not later than 6 months after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit to Congress a report on ways to change, in a budget neutral manner, the payment structure for recovery audit contractors under section 1893(h)(1) of the Social Security Act ( 42 U.S.C. 1395ddd(h)(1) ) from an incentive-based model to a non-incentive based approach that does not impose additional financial burdens on providers. 12. Incentives and disincentives for Medicare contractors, providers, and suppliers Section 1893 of the Social Security Act ( 42 U.S.C. 1395ddd ), as amended by section 10, is further amended by adding at the end the following new subsection: (l) Compliance incentive program (1) In general Not later than 1 year after the date of enactment of this subsection, the Secretary shall establish a compliance incentive program, consisting of the components described in paragraphs (2) and (3), to encourage— (A) providers of services and suppliers to submit accurate claims that comply with this title and the policies, regulations, and program instructions promulgated thereunder, as well as any applicable national or local coverage determinations