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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Pension Costs Claimed for Medicare Reimbursement by Wellmark, Inc.," (A-07-02-03029)

February 21, 2003

Complete Text of Report is available in PDF format (1.1 MB). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The purpose of this review was to determine the allowability of pension costs claimed for Medicare reimbursement for Fiscal Years (FYs) 1992 through 2000.  For FYs 1992 through 2000, we determined that Wellmark, Inc. (Wellmark) over claimed Medicare pension costs.  During this period, the allowable Medicare pension costs were $2,726,878.  However, Wellmark claimed pension costs of $3,273,931 for Medicare reimbursement.  As a result, Wellmark over claimed pension costs by $547,053.  This over claim of pension costs was the result of Wellmark not basing their pension claims on separately calculated pension costs for the Medicare segment.  We recommended that Wellmark remit $547,053 to the Federal Government.