Department of Health and Human Services

Office of Inspector General -- AUDIT

"Supplemental Employee Retirement Plan Costs Claimed by Transamerica Occidental Life Insurance Company," (A-07-02-03016)

March 27, 2002


Complete Text of Report is available in PDF format (685 KB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


EXECUTIVE SUMMARY:

The purpose of our review was to determine the allowability of $180,244 costs claimed for Medicare reimbursement by Transamerica Occidental Life Insurance Company (TOLIC).  The $180,244 represents Supplemental Employee Retirement Plan (SERP) costs that will be incurred subsequent to the termination of TOLICís Medicare contract.  The review showed that the claimed costs are unallowable for Medicare reimbursement and we recommend that TOLIC withdraw the claim.  The TOLIC disagreed that the SERP costs were unallowable.