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Audit (A-07-08-00259)

11-04-2008
Review of Pension Costs Claimed for Medicare Reimbursement by Noridian Mutual Insurance Company for Fiscal Years 1999 Through 2005

Executive Summary

Noridian Mutual Insurance Company (Noridian), a Centers for Medicare & Medicaid Services (CMS) contractor, underclaimed $39,000 of allowable pension costs. During our audit period, Noridian administered Medicare Part A and Part B operations under a cost reimbursement contract with CMS. We recommended that Noridian revise its Final Administrative Cost Proposals to claim allowable CAS pension costs of $39,000 for FYs 1999 through 2005. We also recommended that Noridian claim future pension costs in accordance with Federal requirements and the Medicare contracts. Noridian concurred with our recommendations.

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