Audit of Medicare Part A Administrative Costs for the Period November 5, 2007, Through September 30, 2008 at Wisconsin Physicians Service Insurance Corporation

Administrative costs reported by Wisconsin Physicians Service Insurance Corporation (WPS) on its FY 2008 Final Administrative Cost Proposal were generally reasonable, allowable, and allocable and in compliance with the Federal Acquisition Regulation and other applicable criteria. However, WPS reported unallowable costs totaling $945,000 because it overstated costs for indirect costs ($871,000), outside professional services ($39,000), travel ($26,000), miscellaneous ($7,000), and other ($2,000).