Report Materials
Riverbend Government Benefits Administrator (Riverbend), a terminated Medicare contractor in Tennessee, generally complied with Federal requirements for claimed administrative costs from October 1, 2004, through August 3, 2009. Of the $141.5 million in administrative costs claimed, $140.1 million was allowable for reimbursement under the contract. However, $691,000 in costs was not adequately supported and allocated to the contract in compliance with applicable Federal requirements. In addition, Riverbend claimed administrative costs totaling $563,000 on its Medicare Final Administrative Cost Proposals (FACP) that exceeded the Notice of Budget Approval (NOBA). Riverbend also overstated accrued credits by $70,000. The overstated credits resulted in a $70,000 understatement of administrative costs.
We recommended that Riverbend (1) reduce costs claimed on its FACPs by $691,000, (2) work with CMS to resolve $563,000 in costs exceeding the NOBAs, and (3) work with CMS to resolve $70,000 in overstated accrued credits. Riverbend concurred with our recommendations and stated that it would work directly with CMS to address them.
Notice
This report may be subject to section 5274 of the National Defense Authorization Act Fiscal Year 2023, 117 Pub. L. 263.