Audit of Administrative Costs Claimed Under Parts A & B of the Health Insurance for the Aged and Disabled Programs -- AdminaStar Federal, Inc. Indianapolis, Indiana

This audit covered costs claimed by AdminaStar Federal (AdminaStar) on final administrative cost proposals for Fiscal Years 1998 and 1999.  Costs claimed totaled $193,455,170: $81,763,259 for Part A, $71,399,257 for Part B, and $40,292,654 for durable medical equipment regional carrier (DMERC) operations.  Of the total claimed, we recommended a financial adjustment of $4,694,863: $2,171,529 for Part A, $1,602,931 for Part B, and $920,403 for DMERC operations.  We also found that information to support the prior approval of leases and the volume of claims used to compute complementary credits was not available.  We recommended that AdminaStar provide the necessary documentation to the Centers for Medicare and Medicaid Services for review.  Adjustments to the Final Administrative Cost Proposals should be made if necessary.