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Department of Health and Human Services

Office of Inspector General -- AUDIT

"Review of Postretirement Benefit Costs Claimed for Blue Cross Blue Shield of South Carolina for Fiscal Years 2000 Through 2004," (A-07-07-00230)

February 25, 2008

PDF File Complete Text of Report is available in PDF format (971 kb). Copies can also be obtained by contacting the Office of Public Affairs at 202-619-1343.


The objective of our review was to determine the allowability of South Carolina’s post retirement benefit (PRB) costs claimed for Medicare reimbursement for fiscal years (FY) 2000 through 2004.  We found that South Carolina underclaimed $180,720 of accrued PRB costs for Medicare reimbursement for FYs 2000 through 2004.  We recommended that South Carolina revise its Final Administrative Cost Proposals for FYs 2000 through 2004 to increase its claimed PRB costs by $180,720and claim future PRB costs in accordance with the Medicare contract.  South Carolina did not completely concur with our recommendations.