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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of CIGNA's Fiscal Year 1996-2001 Medicare Final Administrative Cost Proposals," (A-04-02-02022)

December 16, 2003

Complete Text of Report is available in PDF format (246 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of this review was to determine if the costs CIGNA claimed on its Final Administrative Cost Proposals for administering the Medicare Part B and DMERC contracts for the period October 1, 1995 through September 30, 2001 were reasonable, allocable, and allowable for Medicare reimbursement.  We concluded that $370,602 of direct costs were unallowable and $30,690,542 of indirect costs were considered unsupported and set aside for adjudication by the Centers for Medicare and Medicaid Services (CMS).  We recommended financial adjustments and procedural improvements.