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Audit (A-04-07-00031)

Review of CIGNA Government Services Part B Final Administrative Cost Proposals for Fiscal Years 2004 Through 2006

Executive Summary

Of the $139.2 million in administrative costs reviewed for fiscal years 2004 through 2006, CIGNA appropriately claimed $138.7 million. However, we identified $570,000, composed of $48,000 of direct costs and $522,000 in indirect costs that CIGNA did not support as reasonable, allocable, or allowable for Medicare reimbursement because it did not comply with Federal requirements for maintaining adequate accounting records covering the use of funds.

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