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Department of Health and Human Services

"Review of Medicare Part A Administrative Costs Claimed By Horizon Blue Cross Blue Shield of New Jersey for the Period October 1, 1997 through July 31, 2000," (A-02-01-01009)

January 6, 2003


Complete Text of Report is available in PDF format (4.93 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

The objective of our review was to determine whether administrative costs claimed by Horizon Blue Cross Blue Shield of New Jersey (Horizon) on its Medicare Part A Final Administrative Cost Proposals (FACP) covering the period October 1, 1997 through July 31, 2000 were allowable, allocable and reasonable.  We found that Horizonís reported administrative costs included  $12,000 of employee training costs for services that did not benefit Medicare, and  $1,651 of excessive executive salaries and fringe benefits.  We recommended that costs claimed by Horizon for the period October 1, 1997 through July 31, 2000 be reduced by $13,651.